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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

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. 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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