📙 Economic Value Added Calculator
Assess value creation above capital costs
How to Use This Calculator
1
Enter NOPAT
Use after-tax operating profit.
2
Enter invested capital and WACC
Use average invested capital and firm WACC.
3
Calculate
Positive EVA indicates value creation.
Formula
EVA = NOPAT − (Invested Capital × WACC)
Example: 2.5m − (20m × 8%) = 0.9m
About EVA
EVA measures economic profit after deducting the cost of capital, aligning with shareholder value creation.
Tips
- Use average invested capital during the period
- Normalize NOPAT for unusual items
- Ensure WACC reflects current risk and structure
Frequently Asked Questions
Is EVA the same as residual income?
Conceptually similar: income minus a charge for capital.
Which tax rate to use?
Use operating tax rate consistent with NOPAT.