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EBIT Calculator

Work out ebit instantly with clear inputs, formula shown and shareable results.

About EBIT Calculator

EBIT is earnings before interest and tax — the profit a business generates from trading, before financing structure and tax jurisdiction distort the picture. Revenue less cost of goods sold gives gross profit; deducting operating expenses leaves EBIT.

Formulas

EBIT

EBIT = Revenue - COGS - Operating expenses

EBIT margin

EBIT margin % = EBIT / Revenue x 100

Worked example

With the default values below, EBIT Calculator returns EBIT (operating profit) of $170,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Revenue
850,000
Cost of goods sold
470,000
Operating expenses (SG&A, depreciation)
210,000

Results

EBIT (operating profit)
$170,000.00
Gross profit
$380,000.00
EBIT margin
20.00%
Gross margin
44.71%

Step by step

  1. 1Values used
  2. 2EBIT
  3. 3EBIT margin
  4. 4EBIT (operating profit)= 170,000.00
  5. 5Gross profit= 380,000.00
  6. 6EBIT margin= 20.00
  7. 7Gross margin= 44.71

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Is EBIT the same as operating profit?

In practice they are used interchangeably. They diverge only when a company reports material non-operating income, which sits inside EBIT but outside operating profit.

Why exclude interest and tax?

Both depend on how the company is financed and where it is taxed, not on how well it trades, so removing them makes two businesses comparable.

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EBIT Calculator – Calculate EBIT (operating profit)