Interest expense in EBIT

Interest expense is added back when bridging Net Income to EBIT because EBIT is a pre-financing measure. Use the gross interest expense, not the net of interest income. Capitalised interest is excluded from the income-statement expense and stays in PP&E^{[FASB ASC]}.

Why it is added back

EBIT measures operating performance independent of capital-structure choice. Two companies with identical operating businesses but different debt loads should have the same EBIT but different net incomes. Adding interest back removes the leverage distortion.

Where to find it

Separately labelled line on the income statement (large caps, almost always).
Inside "Other income/(expense), net" (mid-caps and small-caps). Unpack via the notes to the financial statements.

Gross vs net

Use the gross interest expense. Interest income on cash is a non-operating item that either stays in non-operating EBIT (one convention) or is excluded (the other). Pick one and document it.

Capitalised interest

Under ASC 835-20, interest on debt funding a long-lived asset under construction is capitalised into the asset, not expensed. The income-statement interest expense therefore understates the firm's true interest cost during heavy build periods. This is rarely material for software companies; it matters for utilities, real estate developers, and capex-heavy manufacturing.

See interest coverage and Apple FY25.