Finance

NOPAT Calculator

Calculate Net Operating Profit After Tax for valuation and EVA analysis.

Operating Income (EBIT) ($)

Tax Rate (%)

NOPAT —

Tax Amount —

Tax Shield (1 − Tax Rate) —

Formula:
NOPAT = EBIT × (1 − Tax Rate)

What is NOPAT?

Net Operating Profit After Tax (NOPAT) measures a company's after-tax operating profit, assuming it has no debt. It strips out the effects of capital structure (interest payments) to give a pure view of operational performance. NOPAT is a key input for Economic Value Added (EVA) calculations.

Uses of NOPAT

EVA calculation — EVA = NOPAT − (Capital × WACC)
Company comparison — Compares companies regardless of how they're financed
Free Cash Flow to Firm — FCFF starts with NOPAT