EBIT Calculator

Primary calculation: EBIT = Revenue − Cost of Goods Sold − Operating Expenses − Depreciation & Amortization + Other Operating Income. This follows standard presentation where depreciation and amortization are operating expenses and other operating items are included in operating profit.

Reconciled calculation: EBIT (reconciled) = Net Income + Interest Expense + Income Tax Expense. This is a back-solve from the bottom of the P&L; differences between the two approaches highlight non-operating gains/losses, unusual items, or presentation differences.

EBIT Margin = EBIT / Revenue × 100. When revenue is zero, interpret margin with care; negative margins indicate operating losses. For authoritative accounting guidance, consult the Financial Accounting Standards Board (FASB) and public filing practices described by the U.S. Securities and Exchange Commission (SEC).

Example 1 (direct): Revenue 1,000, COGS 400, Operating Expenses 300, D&A 50, Other Operating Income 0 → EBIT = 1,000 − 400 − 300 − 50 = 250; EBIT Margin = 25.0%.

Example 2 (reconcile): Net Income 140, Interest Expense 30, Income Tax Expense 80 → Reconciled EBIT = 140 + 30 + 80 = 250; if calculated EBIT is different, investigate non-operating items or tax/interest presentation differences.