Operating Profit / EBIT
Operating Profit Calculator
Calculate EBIT (Earnings Before Interest & Taxes) and operating profit margin from your revenue and costs.
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Operating Profit (EBIT)
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Before interest & tax
Operating Margin
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% of revenue
Gross Profit
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Revenue minus COGS
Gross Margin
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% of revenue
Operating Profit Formula
Operating Profit (EBIT) = Revenue − COGS − Operating Expenses − D&A
Operating Margin (%) = (EBIT ÷ Revenue) × 100
Operating Margin (%) = (EBIT ÷ Revenue) × 100
Operating profit measures how efficiently a business runs its core operations, before the effects of how it's financed (interest) or taxed. It's the profit from the business itself, not from financial decisions.
EBIT vs EBITDA
EBIT includes depreciation and amortization as expenses. EBITDA adds them back. EBIT is closer to “true” accounting profit; EBITDA is closer to cash flow. See the EBITDA Calculator for comparison.