Ecommerce EBITDA Calculator
Earnings before interest, tax, depreciation and amortisation.
EBITDA
$22,000
18.3% EBITDA margin
EBITDA ignores real costs — assets do wear out and interest is payable. It is a starting point for valuation, not the conclusion.
How the Ecommerce EBITDA Calculator works
EBITDA strips out financing decisions, tax jurisdictions and accounting choices about depreciation, leaving a rough proxy for operating cash generation. It is the number acquirers value businesses on, which makes it worth knowing well before any conversation about selling.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is EBITDA calculated?
Net profit plus interest plus tax plus depreciation plus amortisation. Equivalently, operating profit plus depreciation and amortisation. Both routes should reconcile — if they do not, something is misclassified.
Why do buyers value businesses on EBITDA?
Because it approximates what the business generates independently of how the current owner financed it or how assets were written down. A buyer will bring their own financing and tax position, so those lines tell them little.
What is a good EBITDA margin for ecommerce?
10-20% is typical for a healthy store, with 20%+ considered strong. Brands with genuine pricing power and efficient acquisition reach higher; heavily advertised, thin-margin resellers run considerably lower.
What is the criticism of EBITDA?
That it ignores real costs. Depreciation reflects assets genuinely wearing out and needing replacement, and interest is genuinely payable. A business can show healthy EBITDA and still consume cash — which is why it is a starting point in valuation, not the conclusion.