EBIT Calculator

Quick answer

The EBIT calculator works out earnings before interest and taxes (operating profit) – from revenue and expenses, or from net income by adding back interest and taxes – and the EBIT margin.

$
$
$
EBIT (operating profit)
$ —
EBIT margin
— %

EBIT shows how profitable the core business is regardless of how it is financed or taxed – useful for comparing companies with different debt levels.

How to use the EBIT Calculator

  1. Calculate from
  2. Revenue
  3. Cost of goods sold
  4. Operating expenses (incl. depreciation)
  5. Net income
  6. Interest expense
  7. Income taxes

Results update as you type, and every field accepts the units shown in its menu.

How it works

Choose the method and enter the figures.

Tips

  • Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
  • Average opening and closing balances when a ratio mixes a flow with a stock.
  • Benchmark against competitors in the same industry.
  • Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

Common mistakes to avoid

  • Using sales instead of cost of goods sold for inventory ratios.
  • Mixing gross, operating and net profit.
  • Ignoring one-off items that distort a single year.

Inputs explained

Field What to enter
Calculate from Choose one: Revenue and expenses, Net income
Revenue Amount in your currency
Cost of goods sold Amount in your currency
Operating expenses (incl. depreciation) Amount in your currency
Net income Amount in your currency
Interest expense Amount in your currency
Income taxes Amount in your currency

Example values

How the main result changes when Revenue changes and everything else stays at the example values above:

Revenue EBIT (operating profit)
500,000 -300,000
750,000 -50,000
1,000,000 200,000
1,250,000 450,000
1,500,000 700,000
2,000,000 1,200,000

Formula

EBIT = revenue − COGS − operating expenses (incl. depreciation)or EBIT = net income + interest + taxesEBIT margin = EBIT ÷ revenue

Worked example

Inputs — Calculate from: Revenue and expenses; Revenue: $1,000,000; Cost of goods sold: $550,000; Operating expenses (incl. depreciation): $250,000; Net income: $150,000; Interest expense: $30,000; Income taxes: $40,000.
Results — EBIT (operating profit) = $200,000.00; EBIT margin = 20 %.

Frequently asked questions

What is EBIT?

Earnings before interest and taxes – operating profit.

Is EBIT the same as operating income?

Usually, unless there are significant non-operating items.

What is a good EBIT margin?

It depends on the industry; 10–20% is solid for many businesses.

What formula does the EBIT Calculator use?

EBIT = revenue − COGS − operating expenses (incl. depreciation).

Sources

  1. Corporate Finance Institute – financial ratios

Cite this calculator

Speedy Calculator. (2026). EBIT Calculator. Speedy Calculator. https://speedycalculator.com/calculators/finance/ebit/