Let’s get down to the numbers – what is the difference between net income and EBIT? Put simply, net income is the bottom line of a business: all of a company’s revenue minus all of its expenditures. It is a measure of overall profitability and is expressed in dollars. Meanwhile, EBIT, or Earnings Before Interest and Tax, is based on the same calculations as net income but does not consider interest payments and tax expenses. In other words, EBIT measures a company’s profitability before those factors are taken into account. This makes it an important indicator for potential investors who want to understand a company’s core performance before making any investment decisions.