Calculating Operating profit :
EBIT definition: Earnings before interest and taxes (EBIT) is operating profit (operating income).
EBIT formula:
(EBIT) Operating income = Revenue – Operating expenses (OPEX)
EBIT = Operating Revenue – Operating Expenses + Non-operating Income
Earnings before interest and tax = Sales revenue – Cost of goods sold – Operating expenses (all expenses except interest and taxes)
Operating Expenses (OPEX) are costs for running day-to-day operations.
EBIT CALCULATOR:
Disclaimer
The information provided on Accounting Portal is for general informational and educational purposes only and does not constitute professional accounting, tax, financial, or legal advice.
While we strive for accuracy and timeliness, no representation or warranty is made regarding completeness or reliability. Always consult a qualified professional before making any business, tax, or financial decisions.
Neither Accounting Portal nor its authors are liable for any loss or damage resulting from the use of this information.
© 2026 Accounting Portal. All rights reserved.