The EBIT Calculator is used to calculate the earnings before interest and taxes (abbreviated as EBIT).
In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a company’s profitability that excludes interest and income tax expenses. It is calculated as the sum of operating income (also known as “operating profit” and “operating earnings”) and non-operating income, where operating income is operating revenues minus expenses. When a firm has zero non-operating income, then operating income is sometimes used as a synonym for EBIT.
The EBIT calculation formula is as follows:
EBIT = Operating Revenue – Operating Expenses (OPEX) + Non-operating Income