EBIT, EBITDA & Profitability Margin Calculator
Calculate absolute EBIT/EBITDA metrics and profitability margins. Step down from Revenue to Net Income, mapping waterfall margins progressively.
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Operating Profit (EBIT)
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Enter parameters on the left to calculate profitability metrics.
Gross Margin
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EBITDA Margin
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Operating Margin
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Net Margin
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Gross Profit:
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Operating EBITDA:
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Earnings Before Tax (EBT):
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Net Income:
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Earnings Waterfall Breakdown
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Understanding EBIT, EBITDA & Margins
Analyzing corporate profitability requires looking at earnings through different layers of expenses:
- Gross Profit Margin: Measures revenue left after paying Cost of Goods Sold (COGS). It shows the basic viability of the product or service pricing strategy.
- EBITDA Margin: Earnings Before Interest, Taxes, Depreciation, and Amortization divided by revenue. It strips out accounting policies (D&A) and capital structure (Interest & Tax) to examine pure core operating cash flow.
- Operating (EBIT) Margin: Operating Profit divided by revenue. Shows profitability from regular business operations before finance charges and taxes.
- Net Profit Margin: The final percentage of revenue that remains as net profit for shareholders after all expenses, interest, and taxes are settled.
waterfall Step-Down formulas
1. Gross Profit = Revenue – COGS
2. EBITDA = Gross Profit – Operating Expenses (OPEX)
3. EBIT = EBITDA – Depreciation & Amortization (D&A)
4. Net Income = EBIT – Tax & Net Interest Expenses
2. EBITDA = Gross Profit – Operating Expenses (OPEX)
3. EBIT = EBITDA – Depreciation & Amortization (D&A)
4. Net Income = EBIT – Tax & Net Interest Expenses