Profit Before Tax (PBT) is the profit a company earns after deducting all expenses except income tax.
PBT represents a company’s earnings before tax liability is applied. It is calculated after subtracting operating expenses, interest, and other costs from total revenue.
It is an important metric for comparing profitability across companies, as it excludes the impact of different tax rates.
👉 PBT = Revenue – (Operating Expenses + Interest + Other Expenses)
"If a company earns ₹10 lakh revenue and incurs ₹7 lakh total expenses (excluding tax): 👉 PBT = ₹3 lakh"