EBITDA.
Earnings before interest, taxes, depreciation, and amortization: the closest simple read on what the business itself earns.
What is EBITDA?
EBITDA is gross profit minus operating expenses, before interest, taxes, depreciation, and amortization. Work down the P&L: revenue, minus cost of goods sold (materials, subcontractors, burdened job labor) gives gross profit; minus operating expenses (office salaries, rent, software, marketing, insurance) gives EBITDA.
Adjusted EBITDA
Adjusted EBITDA is the version a buyer uses. Add back what is yours rather than the business’s, like an owner salary above market or personal vehicles and travel, and subtract what you have been avoiding, like a real market salary for the role you fill yourself.
Why it matters for home service businesses
Home service companies trade on a multiple of adjusted EBITDA, so every point of margin is multiplied when someone writes the check. Owner-operated shops often run 8 to 12 percent EBITDA margin; well-run ones reach 15 to 20. It is also the cash that funds the next truck without a loan.
How Lakehouse handles it
Job costing, invoicing, and payments in one system give you clean revenue and COGS instead of a reconstruction at year end. See job costing and the metrics guide.
See how Lakehouse puts this to work for your shop.
Book a demoSee it on your own jobs.
Book a working session and free business audit with the Lakehouse team. Bring a real job, a real estimate, and a real question about running your business. We will show you how Lakehouse handles it.