This EBIT vs EBITDA Excel Template has an example on how to use the income statement to calculate both EBIT and EBITDA. This is an educational resource that will assist you in understanding the difference between the two metrics. You will see from the calculation that both EBIT can never be larger than EBITDA.

Both of these earnings metrics are extremely important to look at the cash generating the ability of a business’ operations. They are also widely used for multiple valuations such as looking at EV/EBIT or EV/EBITDA.