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Earnings Before Interest & Tax Calculator
Estimate EBIT from revenue and total operating costs.
- Formula & worked example
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Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Edit a calculated value to solve backwards, or lock a value to hold it fixed.
- Use the worked example to check the method. Reset restores the starting fields.
Use the result with context
Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.
Formula and method
Subtract total operating costs from revenue. For this two-input model, operating expenses must include the cost of sales and other operating charges that belong in EBIT, while excluding interest and income tax.
EBIT = revenue − total operating costs
Worked example
Enter these known values and leave the other values blank.
- Revenue
- 200000 USD
- Operating expenses
- 150000 USD
- EBIT
- 50000 USD
Assumptions and limitations
- Use values from a consistent period, scope and currency. The stated formula defines this simplified model; the explanation describes quantities it leaves out.
Common questions
Should cost of goods sold be included?
Yes. Include cost of goods sold in the operating-cost input for this simplified model. Omitting it would overstate earnings.
References
The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.
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