EBIT & EBITDA Calculator

Understanding EBIT & EBITDA

EBIT (Earnings Before Interest and Taxes) reflects profit from core operations before financing and tax. It incorporates non-cash charges like depreciation and amortization, so it captures the cost of using long-lived assets in the period. EBITDA adds back those non-cash charges, offering a quick proxy for “cash operating profit” before interest and taxes. Both are non-GAAP metrics used for comparability, planning, and valuation.

Formulas

• EBITDA = Revenue − COGS − OPEX
• EBIT = EBITDA − D&A + Other operating

In practice, “Other operating” captures recurring operating items not included in OPEX (e.g., service credits, inventory write-downs). If you already know EBITDA or EBIT, use Simple mode: enter any two of EBITDA, D&A, and Other operating, and the tool derives the third.

When to use which?

Use EBIT to evaluate operating performance including the economic cost of assets. Use EBITDA when you want a cash-like view that strips out non-cash D&A — often helpful for quick comparisons or debt coverage analysis. For investment decisions where the timing of cash flows matters, consider pairing these with IRR/NPV.

Margins & interpretation

EBITDA margin = EBITDA ÷ Revenue; EBIT margin = EBIT ÷ Revenue. Higher margins generally indicate stronger operating efficiency, but context matters: industry capital intensity, lifecycle stage, and accounting policies can drive differences.

Informational only — not accounting advice. Keep inputs on the same period basis (monthly, quarterly, annually) for consistent results.