Result
EBIT
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
EBIT = net profit + loan interest + income tax. It's the same "add back" logic as EBITDA, just without depreciation — EBIT shows the result of operations before the effect of financing choices and tax jurisdiction, but still after asset wear.
EBIT almost always matches operating profit (revenue − cost of goods − operating expenses), as long as net profit doesn't contain other non-operating items besides interest and taxes. If it does — say, a one-off gain from selling an asset — EBIT and operating profit will diverge slightly, because the bottom-up add-back method picks that item up while the top-down subtraction method never sees it.
EBIT = EBITDA − depreciation. The gap between the two shows how capital-intensive a business is: manufacturers with expensive equipment usually see EBIT noticeably below EBITDA, while asset-light service businesses see the two numbers nearly match.