# EBT Calculator — Earnings Before Tax

URL: https://speedycalculator.com/calculators/finance/ebt/
Last updated: 2026-10-25

> The EBT calculator works out earnings before tax (pre-tax income) – revenue minus COGS, operating expenses and interest – the EBT margin and the tax and net income at your tax rate.

## Inputs

- Revenue
- Cost of goods sold
- Operating expenses (incl. depreciation)
- Interest expense
- Tax rate (%)

## Results

- Earnings before tax (EBT)
- EBT margin
- Income tax
- Net income

## Formula

```
EBT = revenue − COGS − operating expenses − interest
or EBT = net income + taxes
Net income = EBT × (1 − tax rate)
```

## Explanation

EBT removes the effect of taxes, making it useful for comparing companies in different tax jurisdictions. It sits between EBIT and net income on the income statement.

### How to use the EBT Calculator — Earnings Before Tax

- **Revenue**
- **Cost of goods sold**
- **Operating expenses (incl. depreciation)**
- **Interest expense**
- **Tax rate**

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

### How it works

Enter revenue, COGS, operating expenses (including depreciation), interest and the tax rate.

### 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

FieldWhat to enterRevenueAmount in your currencyCost of goods soldAmount in your currencyOperating expenses (incl. depreciation)Amount in your currencyInterest expenseAmount in your currencyTax rateIn %

### What each result means

- **Earnings before tax (EBT)** = [Revenue] - [Cost of goods sold] - [Operating expenses (incl. depreciation)] - [Interest expense]
- **EBT margin** = [Earnings before tax (EBT)]÷[Revenue]×100
- **Income tax** = max([Earnings before tax (EBT)], 0)×[Tax rate]÷100
- **Net income** = [Earnings before tax (EBT)] - [Income tax]

### Example values

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

RevenueEarnings before tax (EBT)500,000-330,000750,000-80,0001,000,000170,0001,250,000420,0001,500,000670,0002,000,0001,170,000

## Worked example

Inputs — Revenue: $1,000,000; Cost of goods sold: $550,000; Operating expenses (incl. depreciation): $250,000; Interest expense: $30,000; Tax rate: 21 %.

Results — **Earnings before tax (EBT) = $170,000.00**; EBT margin = 17 %; Income tax = $35,700.00; Net income = $134,300.00.

## FAQ

**What is EBT?**
Earnings before tax – profit after interest but before income tax.

**How is EBT different from EBIT?**
EBIT is before interest as well as tax.

**Why use EBT?**
To compare profitability without the effect of different tax rates.

**What formula does the EBT Calculator — Earnings Before Tax use?**
EBT = revenue − COGS − operating expenses − interest.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)