To calculate EBITDA, you need to start with a company's revenue and subtract its cost of goods sold.
Then, you subtract its operating expenses (like salaries and rent).
This gives you the company's EBITDA.
Let's say you and your friends sell lemonade from a stand.
You make $20 selling lemonade, but you spent $5 on lemons, sugar, and cups.
You also spent $5 on flyers to advertise your lemonade stand.
To calculate your EBITDA, you would start with the $20 you made selling lemonade, and subtract the $5 you spent on lemons, sugar, and cups.
This leaves you with $15. Then, you would subtract the $5 you spent on advertising.
This leaves you with an EBITDA of $10.