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EBIT Calculator (Operating Profit)

LAST UPDATE: August 24th, 2018

Calculator

EBIT – simple method

EBIT – normal method

What is EBIT?

EBIT (Earnings before Interest and Taxes) is a measurement of profitability of a firm. It is also known as operating profit.

Formula

EBIT (simple) = Revenue – Operating Expense

EBIT (alternate) = Net Income + Interest + Taxes

Example

(Simple) – A company has revenue of $17,000 and operating expenses of $5,500.

EBIT (simple) = $17,000 – $5,500 = $11,500

(Normal) – A company has net income of $2,100, and pays interest of $2,500 and taxes of $3,500.

EBIT (normal) = $2,100 + $2,500 + $3,500 = $8,100

Sources and more resources