Economic Value Added Calculator
Calculate EVA from NOPAT, invested capital and weighted average cost of capital.
How to Use the Economic Value Added Calculator
Enter net operating profit after tax, invested capital and the cost of capital. The calculator estimates whether operating profit exceeds the capital charge required by investors.
Practical Example
If NOPAT is USD 1.2 million, invested capital is USD 8 million and WACC is 10%, the capital charge is USD 800,000 and EVA is USD 400,000.
Factors That Affect EVA
Operating profitability, tax rate, invested capital, asset efficiency and WACC all influence economic value added.
Frequently Asked Questions
What does positive EVA mean?
It means modeled operating profit exceeds the required capital charge.
What is the basic formula?
EVA = NOPAT − (Invested Capital × WACC).
Is EVA the same as accounting profit?
No. EVA deducts an explicit charge for the capital employed.
Economic Value Added and Capital Cost
EVA measures operating profit after tax relative to a charge for capital employed. A positive result indicates returns above the assumed capital cost under the inputs used. Accounting adjustments, invested-capital definitions and WACC assumptions can materially affect the result.