Accounting & Ratios

Economic Value Added

Measure earnings after a modeled charge for all invested capital.

Your numbers

Sample inputs are illustrative. Changing currency changes labels only.

Your result

Preparing the sample calculation…

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How to use this calculator

  1. Enter net operating profit after tax, invested capital, wacc (%).
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

EVA=NOPAT−invested capital×WACC.

Assumptions and limitations

Accounting adjustments and a reliably estimated capital cost matter; no market valuation is implied.

Worked example

With net operating profit after tax = 50000, invested capital = 300000, wacc (%) = 10, economic value added is approximately 20000.

What the result means

Measure earnings after a modeled charge for all invested capital.

Common questions

How should I interpret economic value added?

Measure earnings after a modeled charge for all invested capital.

What should I check before using this result?

Accounting adjustments and a reliably estimated capital cost matter; no market valuation is implied.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.