EBT Calculator
Enter revenue, operating costs and non-operating items to compute earnings before tax (EBT) = revenue − operating costs + non-operating income − non-operating expense.
Input Data
Results
At a glance:EBT (Earnings Before Tax) is profit before income tax — the immediate base for corporate tax. EBT = revenue − operating costs + non-operating income − non-operating expense. It sits between operating profit (EBIT) and net profit: EBT = EBIT ± non-operating items, and net profit = EBT × (1 − tax rate). Higher EBT means higher taxable profit. Tax is a cost on profit, not a deduction from revenue before EBT.
Formula
EBT = revenue − operating costs + non-operating income − non-operating expense.
Net profit = EBT × (1 − tax rate).
Income tax = EBT × tax rate.
$$EBT = R - C + I_{n} - E_{n}$$$$NP = EBT(1 - t)$$How to Use
- Enter revenue, operating costs, non-operating income and non-operating expense.
- Enter the tax rate (HK companies' profits tax ~16.5%).
- The tool returns EBT, income tax and net profit.
Case Studies
Company profit and tax
Revenue HK$1,000,000, operating costs HK$600,000, non-op income HK$20,000, non-op expense HK$30,000.
EBT = 1,000,000 − 600,000 + 20,000 − 30,000 = HK$390,000.
At 16.5% tax, net profit = 390,000 × 0.835 ≈ HK$325,650; tax ≈ HK$64,350.
FAQ
Is EBT the same as EBIT?
No. EBIT excludes interest (operating profit); EBT adds non-operating items (interest, gains/losses) before tax. EBT = EBIT ± non-operating items.
Why compute EBT?
EBT is the tax base — corporate profits tax is charged on profit before tax. It separates operating performance from financing/non-operating effects and tax.
What is the HK profits tax rate?
Hong Kong companies' profits tax is ~16.5% (the two-tiered rate lowers the first HK$2,000,000 to 8.25%). Enter your applicable rate.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.