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Revenue to Pretax Earnings Calculator

Build earnings before tax from revenue, direct costs, operating expenses, interest and other income.

  • 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. Where results are editable, change one to solve backwards. 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

Revenue of 100,000 less cost of goods sold of 40,000 gives gross profit of 60,000. Subtract 20,000 of SG&A, 5,000 of depreciation and amortization, and 3,000 of interest; add 2,000 of other income. Earnings before tax are 34,000.

EBT = revenue − COGS − SG&A − depreciation and amortization − interest expense + other income

Worked example

Enter these known values and leave the other values blank.

Revenue
100000 USD
Cost of goods sold (COGS)
40000 USD
Selling, general and administrative expenses
20000 USD
Depreciation and amortization (D&A)
5000 USD
Interest expense
3000 USD
Other income
2000 USD
Gross profit
60000 USD
Operating expense
25000 USD
Earnings before tax
34000 USD

Assumptions and limitations

  • Use amounts for the same accounting period and currency. Avoid counting depreciation twice if it is already included in COGS or SG&A; enter only the separate amount here.
  • This worksheet combines the listed income and expense categories. Include other relevant operating expenses in the operating-expense total, or calculate from that total directly. It does not calculate taxable income or tax payable. Negative pretax earnings represent a loss.

Common questions

Can I enter gross profit and operating expenses directly?

Yes. Enter those totals with interest expense and other income to calculate pretax earnings without supplying every component.

How does EBT differ from net income?

EBT is before income tax expense. Net income also reflects income taxes and any other applicable items in the statement.

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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