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

Your investors will want to know the state of your business. One calculation used is Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). 

This calculation can shed light on your startup's ability to generate income solely from its core operations rather than net income alone. Investors also use it to analyze and compare profitability between corporations and industries. 

Like EBIT, EBITDA is not GAAP compliant but an excellent metric for startups and investors to use for financial clarity.

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