EBIT vs. Operating Income: An Overview Earnings before interest and taxes (EBIT) and operating income are terms that are often used interchangeably, although there is a notable difference between ...

Therefore, the easiest way to determine EBIT would be to take the company's net income of $177,000, and add the interest expense of $14,000, resulting in EBIT of $191,000.

An alternative way to calculate EBIT is to add interest and tax payments, working upwards on the income statements starting with net income. For EBITDA, continue up to include depreciation and ...