EBIT (Earnings Before Interest and Taxes) Calculator

Calculate EBIT (Earnings Before Interest and Taxes)

Input Fields

Total Revenue

R

$

Enter the total revenue from all sales

Operating Expenses

OE

$

Enter the total operating expenses (excluding interest and taxes)

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Your Results

Earnings Before Interest and Taxes (EBIT)

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EBIT Formula

$$EBIT = \text{Revenue} – \text{Operating Expenses}$$

Where:

• EBIT – Earnings Before Interest and Taxes
• Revenue – total income from sales or services
• Operating Expenses – total costs incurred during normal business operations

This formula helps isolate the company’s operating performance by excluding the impact of interest payments and taxes.

EBIT is widely used in financial analysis to measure a company’s operational profitability. By excluding interest and taxes, EBIT provides a clearer picture of how effectively the company is generating profits from its core operations. This metric is useful for investors, analysts, and managers when assessing operational efficiency and profitability before external factors like financing costs and tax strategies.