EBIT Calculator

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EBIT Calculator is used to calculate the Earnings Before Interest and Taxes (EBIT) of a company

EBIT:
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What does EBIT mean?
EBIT or Earnings before interest and taxes is an assessment of profit of a business and includes all expenses except interest and income tax expenses.
Formula
  • EBIT = Revenue - OPEX (Operating Expenses)
  • OR
  • EBIT = Net Income + Interest + Taxes
Example

Suppose a company manufacturers harvester for commercial use. This year its income statement report has the following:-

  • Sales: $1,000,000
  • CGS: $650,000
  • Gross Profit: $350,000
  • OPEX: $200,000
  • Interest Expense: $50,000
  • Income Taxes: $10,000
  • Net Income: $90,000

Therefore, the company earned a profit of $90,000 for this year. According, to the formula EBIT for the year equals $150,000.