Economic Value Added Calculator

Calculate EVA to measure your company's financial performance and value creation

EVA Calculator

Ready to Calculate EVA

Enter your NOPAT, WACC, and capital values to calculate Economic Value Added.

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How to Use the EVA Calculator

1

Enter NOPAT

Input your Net Operating Profit After Tax (NOPAT), which is your operating profit after taxes but before financing costs.

2

Enter WACC

Specify your Weighted Average Cost of Capital (WACC) as a percentage. This represents the minimum return required by investors.

3

Enter Capital Employed

Input your total capital employed, which includes both equity and debt financing used in the business.

4

Review EVA Results

View your Economic Value Added, EVA margin, cost of capital, and whether you're creating or destroying value.

EVA Calculation Tips

1

EVA measures true economic profit after accounting for cost of capital

2

Positive EVA indicates value creation for shareholders

3

Negative EVA suggests the business is destroying shareholder value

4

Compare EVA across business units to identify best performers

5

Use EVA for performance-based compensation systems

6

Monitor EVA trends over time to track improvement

7

EVA can be used for capital budgeting decisions

8

Calculate EVA for different scenarios to optimize capital allocation

9

Use EVA margin to compare profitability across different sized businesses

10

Regular EVA monitoring helps identify operational inefficiencies

Frequently Asked Questions