EBIT Calculator
If you want to calculate the gross earnings or the earnings before paying any interest and taxes, this EBIT calculator is the best choice. In the below article, we will discuss this term in detail.
Earnings before Interest and Taxes or EBIT is the total profit an organization earns before paying any taxes or interest. Moreover, EBIT plays a crucial role in the finance department while analyzing the current company's potential. For instance, before acquiring any enterprise, an investor will look at its EBIT report. In addition, it is beneficial to compare various companies having various strategies to operate tax systems.
We can easily differentiate among two distinct points of view at EBIT:
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Accounting
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Finance
Table of Contents
Formula of EBIT Calculator
To quickly find out the Earnings before Interest and Taxes, you can use our EBIT calculator, or to calculate it manually, you can use the formula listed below;
EBIT = revenue - operating expenses
Whereas,
Revenue is the sales or leads generated by a business.
Operating expenses are the regular costs borne by a company to run the business. e.g., rent, inventory costs, equipment, etc.
Note:
To calculate EBITDA, you can use our EBITDA Calculator.
Example
Suppose an XYZ company has made a revenue of $50,000 and its operating expenses are $24000, then find out the Earnings Before Interest and Taxes of XYZ company.
Given data
Revenue = $50,000
Operating expenses= $24,000
To Find
Earnings before Interest and Taxes = EBIT = ?
Solution
EBIT = revenue - operating expenses
Putting values in the above equation
EBIT = $50,000 - $24,000
The Earnings before the Interest and Taxes of XYZ company are $26,000.
How to use EBIT Calculator?
The steps to use the EBIT calculator are as follows:
Step 1: Enter the value of revenue in the first required input.
Step 2: Enter the value of operating expenses in the second required input.
Step 3: The calculator will automatically display an answer on the screen.
Calculator use
To determine Earnings before the Interest and Taxes of any company, you can use our free online EBIT Calculator. Just enter the amount of revenue and operating expenses of a company, and it will generate a precise answer on the screen.
