Earnings Before Proprietors Income Tax and Depreciation (EBPITD) Calculator Explained:
(a) What is this? This calculator shows the Profit in $ and % before interest, tax, depreciation and owners income.
(b) What does this tell me? The profit in both $ and %, BEFORE Proprietors income, Interest, Tax or Depreciation is paid. It is the highest level of profit, typically usually used for business valuations.
(c) Why should I use it? To determine the profit a business is making. This measure shows the profit is in both % and $ using EBPITD. This calculator is often used for small to mid sized business valuations. The profit is recorded with any drawings the proprietors might make, as their drawings can impact the valuation significantly.
(d) Caution: GST/VAT is excluded from all inputs. Use sales and costs for a month, a quarter, a half or an entire year but make sure all inputs are for the same time frames. Seek the advice of a financial adviosr or accountant. You use this calculator at your risk.