Finance

Economic Value Added (EVA) Calculator

Measure true economic profit by comparing operating profit to the cost of the capital employed.

NOPAT ($)

Net Operating Profit After Tax

Invested Capital ($)

Total Equity + Interest-Bearing Debt

WACC (%)

Weighted Average Cost of Capital

Formula:
EVA = NOPAT − (Invested Capital × WACC)
Capital Charge = Invested Capital × WACC
Positive EVA = Value creation
Negative EVA = Value destruction

What is EVA?

EVA measures whether a company earns more than its cost of capital. A positive EVA means the company creates value for shareholders above what they could earn elsewhere at similar risk.