EBT Calculator
Calculate earnings before tax (EBT) from revenue, COGS, operating expenses, interest, and other income to measure pre-tax profitability.
What Is Earnings Before Tax?
Earnings before tax (EBT), also called profit before tax, measures profitability after all operating and interest costs but before income taxes. It sits between operating profit and net income on the income statement and helps compare companies across different tax jurisdictions.
EBT Formula
$$\text{EBT} = \text{Gross Profit} - \text{Operating Expenses} - \text{Interest Expense} + \text{Other Income}$$
Where gross profit equals revenue minus cost of goods sold, and operating expenses include SG&A plus depreciation and amortization. For operating profit analysis, see our EBIT Calculator and EBITDA Calculator.
Frequently Asked Questions
How is EBT different from EBIT?
EBIT excludes both interest and taxes. EBT includes interest expense but still excludes taxes. EBT is therefore lower than EBIT when a company carries debt.
Can EBT be negative?
Yes. Negative EBT means costs and expenses exceeded revenue before taxes. The company operated at a pre-tax loss.
Why do analysts use EBT?
EBT removes tax strategy differences so analysts can compare operational and financing performance on a consistent basis across companies and countries.
How do I get net income from EBT?
Subtract income tax expense from EBT. Net Income = EBT - Taxes. Use our income tax calculators if you need to estimate the tax component.
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