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