Economic Value Added Calculator
Compute Economic Value Added (EVA) from NOPAT, invested capital, and the weighted cost of capital.
What this calculator does
The Economic Value Added Calculator estimates your result instantly from the values you enter, using standard investing & wealth formulas. Compute Economic Value Added (EVA) from NOPAT, invested capital, and the weighted cost of capital. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
Result
About Economic Value Added Calculator
The Economic Value Added Calculator measures the profit a business earns above the cost of the capital it uses. From net operating profit after tax (NOPAT), the invested capital, and the weighted average cost of capital (WACC), it subtracts the capital charge — invested capital times WACC — from NOPAT.
EVA is a residual-income measure: a positive figure means the business earned more than its financing cost and created value, while a negative figure means it destroyed value even if it reported an accounting profit. The calculator applies that definition directly to the three figures you enter.
Enter NOPAT, the invested capital, and the WACC, press Calculate, and read the economic value added.
Formula & Mathematical Calculation
Economic Value Added = NOPAT − ( Invested Capital × WACC ÷ 100 )
Calculation Example
With $500,000 NOPAT, $2,000,000 invested capital, and a 10% WACC, the capital charge is $2,000,000 × 0.10 = $200,000, so EVA is $500,000 − $200,000 = $300,000.
Key Benefits
- Measures profit earned above the full cost of the capital employed.
- Subtracts a capital charge from NOPAT to reveal true value creation.
- Distinguishes real economic profit from mere accounting profit.
- Uses only NOPAT, invested capital, and WACC as you enter them.
How to Use this Calculator
-
Enter NOPAT
Type net operating profit after tax in the NOPAT field, for example 500000. -
Enter invested capital
Type the total capital invested in the business in the Invested Capital field, for example 2000000. -
Enter the WACC
Type the weighted average cost of capital as a percentage in the WACC field, for example 10. -
Press Calculate
The tool multiplies invested capital by the WACC for the capital charge, then subtracts it from NOPAT to return EVA.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Economic Value Added Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.
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