EBIT Calculator
Calculate earnings before interest and taxes.
EBIT
$50,000
EBIT margin: 25.0%
EBIT = revenue − COGS − operating expenses. It isolates core operating profit before interest and taxes.
What is EBIT?
EBIT (earnings before interest and taxes), also called operating profit, measures how much profit your core operations generate before financing and tax effects.
EBIT = revenue − COGS − operating expenses
How to read your result
- EBIT strips out interest and taxes to isolate operating performance.
- It lets you compare operating efficiency across companies with different debt or tax situations.
- EBIT margin = EBIT ÷ revenue.
- A rising EBIT margin signals improving operating leverage.
Frequently asked questions
What's the difference between EBIT and net profit?
EBIT is profit before interest and taxes are deducted. Net profit is what remains after those are also subtracted.
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