EBT Calculator
Calculate Earnings Before Tax to assess company profitability before tax impact
Calculate Earnings Before Tax
Gross Profit Calculation
Total sales revenue
Direct costs of producing goods
Operating Expenses
Selling, general & administrative expenses
Non-cash depreciation and amortization
Other Items
Cost of debt financing
Non-operating income
EBT Results
Enter your financial data to calculate Earnings Before Tax
Example: Company Alpha EBT Calculation
Company Alpha Financial Data
Revenue: $1,000,000
Cost of Goods Sold: $300,000
SG&A Expenses: $150,000
Depreciation & Amortization: $150,000
Interest Expense: $200,000
Other Income: $100,000
Step 1: Gross Profit
$1,000,000 - $300,000
= $700,000
Step 2: Operating Expenses
$150,000 + $150,000
= $300,000
Step 3: EBIT
$700,000 - $300,000
= $400,000
Step 4: EBT
$400,000 - $200,000 + $100,000
= $300,000
Result: Company Alpha's EBT is $300,000, representing a 30% EBT margin on revenue.
EBT vs Other Metrics
EBITDA
Before interest, tax, depreciation, and amortization
Highest earnings figure
EBIT
Before interest and tax
Operating profit measure
EBT
Before tax only
Pre-tax profitability
Net Income
After all expenses including tax
Bottom line profit
Why Calculate EBT?
Cross-jurisdictional comparison: Compare companies across different tax regimes
Management efficiency: Evaluate operational performance without tax impact
Financial forecasting: Starting point for net income projections
Investment analysis: Assess core business profitability
Understanding Earnings Before Tax (EBT)
What is EBT?
Earnings Before Tax (EBT), also known as profit before tax, is a financial metric that measures a company's profitability before the impact of income taxes. It provides insight into operational efficiency and allows for better comparison across companies with different tax situations.
EBT Formula
EBT = Revenue - COGS - Operating Expenses - Interest Expense + Other Income
Or simply: EBT = EBIT - Interest Expense + Other Income
Key Components
Revenue
Total sales from core business operations
COGS
Direct costs of producing goods or services
Operating Expenses
SG&A and depreciation/amortization expenses
Interest Expense
Cost of debt financing and borrowings
Benefits of EBT Analysis:
- ✓Eliminates tax jurisdiction differences
- ✓Focus on operational and financial performance
- ✓Better cross-company comparisons
- ✓Useful for financial modeling and forecasting
Industry Applications:
- •Investment banking and valuation
- •Credit analysis and lending decisions
- •Management performance evaluation
- •Tax planning and strategy