Earnings Before Interest and Taxes (EBIT)

Curious what your earnings look like before interest and taxes take a chunk? EBIT, an accounting measurement, gives startups a clearer picture of how the business performed in a given period.

Calculating earnings before interest and taxes is relatively straightforward — you subtract your interest expenses and income taxes from your net profit for the period.

While EBIT is not GAAP compliant, it is a good way to determine your overall financial standing.