Overview
Calculate EBIT (Earnings Before Interest and Taxes) using whichever set of figures you have on hand, through two clearly separated modes that never mix inputs: the operating mode computes EBIT = Revenue − COGS − Operating Expenses, working directly from the top of the income statement; the net-income mode computes EBIT = Net Income + Interest + Taxes, working backward from the bottom line by adding back the two items EBIT excludes. Both modes produce the same figure when applied to a consistent set of financials for the same company - they're two paths to the same number, not two different metrics - so the tool keeps them as an explicit toggle rather than blending fields from both into one form, which would silently produce a wrong answer if you mixed a revenue-side COGS with a net-income-side interest figure. Useful for a quick operating-profitability check, comparing companies with different capital structures or tax rates, or as an input into an EBITDA or valuation calculation. Runs entirely client-side, and this is an informational estimate, not financial advice.
Best for: Comparing operating profitability across companies with different debt loads or tax rates
How to use this tool
- Choose a mode. Revenue − COGS − OpEx (working from the top of the income statement), or Net Income + Interest + Taxes (working from the bottom).
- Enter the figures for that mode. Only the fields for the selected mode are used - the two modes don't share or blend inputs.
- Read the EBIT. Earnings before interest and taxes are excluded, isolating operating performance from financing and tax decisions.
Frequently asked questions
No - for a consistent, complete set of financials from the same company, both modes arrive at the same EBIT figure, since they're two different starting points (top of the income statement versus the bottom) for the same underlying number. The tool keeps them as separate, non-mixed modes so you only need whichever set of figures you actually have.
Excluding interest removes the effect of how a company is financed (debt versus equity), and excluding taxes removes differences in tax rate or jurisdiction - both of which can vary widely between companies for reasons unrelated to how well the core business operates. EBIT isolates operating performance from those financing and tax decisions.
EBITDA takes EBIT and adds back depreciation and amortization as well, further isolating cash operating performance from non-cash accounting charges. EBIT still includes depreciation and amortization as expenses; EBITDA does not.