What this calculator does
Economic value added (EVA) works out profit left over after paying for the capital used to generate it. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaNOPAT = EBIT × (1 − Tax rate); EVA = NOPAT − (Invested capital × WACC)
The inputs explained
| Field | What to enter |
|---|---|
| EBIT (operating profit) ($) | A number, measured in your currency. Starts at 400000. |
| Effective tax rate (%) | A number, measured in %. Starts at 25. |
| Invested capital ($) | A number, measured in your currency. Starts at 2000000. |
| WACC (%) | A number, measured in %. Starts at 9. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with ebit (operating profit)
Every other input is held at the calculator’s starting values while ebit (operating profit) varies. Select any row to load that scenario into the calculator.
How the answer changes with ebit (operating profit)
| EBIT (operating profit) ($) | Economic value added | NOPAT | Capital charge |
|---|---|---|---|
| 200,000 | −$30,000.00 | $150,000.00 | $180,000.00 |
| 300,000 | $45,000.00 | $225,000.00 | $180,000.00 |
| 400,000 | $120,000.00 | $300,000.00 | $180,000.00 |
| 600,000 | $270,000.00 | $450,000.00 | $180,000.00 |
| 800,000 | $420,000.00 | $600,000.00 | $180,000.00 |
| 1,200,000 | $720,000.00 | $900,000.00 | $180,000.00 |