The EBT Calculator computes earnings before tax — also called pre-tax income — to highlight a company’s operating profitability before tax effects. It supports two modes: building EBT from revenue and expenses, or reverse-engineering it from net income and tax expense.
How to Use EBT Calculator
- Pick a mode: build from revenue & expenses, or derive from net income & tax.
- Provide the required inputs (revenue, COGS, operating expenses, interest, or net income and tax).
- Review EBT, EBT margin, and any loss notification.
Formula & Theory - EBT Calculator
Direct: EBT = Revenue - COGS - Operating Expenses - Interest
From Net Income: EBT = Net Income + Tax Expense
EBT Margin = EBT / Revenue
Use Cases for EBT Calculator
- Compare pre-tax profitability across companies with different tax jurisdictions.
- Estimate effective tax rates from EBT and net income.
- Track operating performance year over year.
- Support valuation models that use pre-tax cash flows.