What is EBIT?
Earnings before interest and taxes—roughly operating profit.
EBIT Calculator
Measure operating profit before interest and taxes using an income-statement build or EBITDA − D&A.
Enter EBIT inputs
Choose income-statement mode or start from EBITDA and subtract depreciation & amortization.
About this calculator
How to use EBIT Calculator, plus the formulas and logic behind the results.
Tool description
EBIT (operating income) shows profit from core operations before financing and tax effects. It sits below gross profit and above interest expense on many income statements.
How to use
- Select income-statement or EBITDA-based mode.
- Enter the required fields for that mode.
- Select Calculate to view EBIT / operating income.
- Use consistent period amounts (quarter or year).
Formulas & reference
EBIT = Revenue − COGS − Operating expensesEBIT = EBITDA − D&A
EBIT context
- Also called operating income
- Excludes interest and taxes
- Used in interest coverage ratios
- Bridge: EBITDA − D&A = EBIT
Calculation logic
Income mode subtracts COGS and opex from revenue. From-EBITDA mode subtracts D&A from EBITDA. Operating expenses should include D&A if they appear in opex on your statement—or use the EBITDA path instead.
Labeling of “operating expenses” varies; align with how your source statement treats D&A.
EBIT Calculator FAQ
Common questions about the calculation and how to interpret the estimate.
How do you calculate EBIT from revenue?
Subtract COGS and operating expenses from revenue.
How do you get EBIT from EBITDA?
Subtract depreciation and amortization.
Is EBIT the same as operating income?
Often yes, though classifications can differ slightly by company.
Does EBIT include interest?
No. Interest is below EBIT.
Why calculate EBIT?
It helps compare operating performance across different capital structures.