EVA (Economic Value Added) Calculator

Economic Value Added (EVA) Calculator

Economic Value Added (EVA) Calculator

Formula: EVA = NOPAT – (Invested Capital × Cost of Capital)

Economic Value Added (EVA) Calculator

Component Description
Net Operating Profit After Taxes (NOPAT) The profit a company generates from its operations after taxes.
Capital Invested Total amount of capital invested in a company.
Weighted Average Cost of Capital (WACC) The average rate of return a company is expected to pay its shareholders for the use of their capital.
Economic Value Added (EVA) Measure of a company’s financial performance that shows the net profit earned above the required return on the company’s capital.
Formula EVA = NOPAT – (Capital Invested × WACC)
Purpose Helps to determine whether a company is creating value for its shareholders.

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