Compute earnings before interest and taxes.
Please do not make financial decisions based on these results.
What is the EBIT Calculator?
Compute earnings before interest and taxes. To use the EBIT Calculator, enter revenue, cogs, operating expenses; it returns ebit, ebit margin, and shows them instantly as you type.
Where the EBIT Calculator fits
Compute earnings before interest and taxes. The main figure it returns is the EBIT, worked out from the values you enter.
It belongs with the other accounting & microeconomics tools. If you are comparing options or checking a result from another angle, try the EBT Calculator — Earnings Before Tax, Unlevered Free Cash Flow Calculator or the Net Operating Working Capital Calculator.
How to use the EBIT Calculator
- Enter your numbers. The inputs are Revenue ($), COGS ($), Operating expenses ($). Use numbers from the same accounting period so the ratios are comparable. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the EBIT, and the cards below show EBIT margin. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the EBIT Calculator using the default values shown in the calculator above:
Inputs
| Revenue ($) | 3,200,000 |
|---|---|
| COGS ($) | 1,900,000 |
| Operating expenses ($) | 800,000 |
Results
| EBIT | $500,000.00 |
|---|---|
| EBIT margin | 15.63% |
With these inputs the calculator returns EBIT: $500,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Revenue ($) from 3,200,000 to 3,840,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| EBIT | $500,000.00 | $1,140,000.00 | +128% |
| EBIT margin | 15.63% | 29.69% | +90% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the EBIT Calculator reports EBIT and ebit margin. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Is EBIT the same as operating income?
In most cases yes, apart from non-operating items.
What is the difference between EBIT and EBITDA?
EBITDA also adds back depreciation and amortization, so it approximates operating cash profit.
Which accounting standard do the formulas follow?
They use the common textbook definitions that apply under both US GAAP and IFRS unless a tool says otherwise.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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