Here is an EBIT margin calculator for computing earnings before interest expenses and tax margin. Enter the company's net earnings, interest expenses, and tax payments in the period, and total revenues to compute the EBIT margin.

## EBIT Margin Calculator

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## What is the EBIT Margin?

The EBIT margin is a measure of a company's Earnings Before Interest and Taxes (or EBIT) as a percentage of its revenues. EBIT is a modified measure of earnings that adjusts for taxes and the company's choice of capitalization by normalizing interest.

EBIT, EBITA, and EBITDA (and their further variants) all arguably show a company's situation better – or, in the case of a turnaround, before – than using net profit margins. EBIT specifically is closer to operating income (and matches in companies without non-operating earnings), and company improvements show up there before the bottom line.

### EBIT Margin Formula

The formula for EBIT margin is:

EBIT\ Margin=\frac{net\ income+interest\ expense+tax\ expense}{revenue}

Where:

**Net Income**: Net income from the income statement**Revenue**: The company's top line sales**Tax Expense**: The amount paid in taxes**Interest Expense**: Amount the company paid to service its debt in the period

### Margin Calculators

Now that you've seen EBIT margin, try some of the other margin calculators: