Guide to Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What is EBITDA?
Earnings
Interest
Taxes
Depreciation
Amortization
How Does EBITDA Work?
Interest Taxes Depreciation Amortization
How is EBITDA Calculated?
Pros and Cons of EBITDA
EBITDA Example
History of EBITDA
Alternatives to EBITDA
EBT
Operating Cash Flow
EBIT
Revenue
Net Income
The Takeaway
3 Small Business Loan Tips
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Frequently Asked Questions
About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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