Join the waitlist

Economic Value Added (EVA) Calculator

What do these figures come to once the work is shown?

NOPAT, capital charge and EVA from EBIT, tax rate, invested capital and WACC, with the ROIC to WACC spread.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Economic value added
$1,250,000
Operating profit after a charge for all capital used
NOPAT
$3,950,000
Capital charge
$2,700,000
Drawn to one scale
Economic value added$1,250,000
NOPAT$3,950,000
Capital charge$2,700,000
All results
MeasureResult
Economic value added$1,250,000
NOPAT$3,950,000
Capital charge$2,700,000
ROIC13.17%
ROIC minus WACC4.17%
How this was worked out
Work shownrecomputed as you type
NOPAT = EBIT x (1 - tax rate)
Capital charge = invested capital x WACC
EVA = NOPAT - capital charge = (ROIC - WACC) x invested capital

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • NOPAT = EBIT x (1 - tax rate)
  • Capital charge = invested capital x WACC
  • EVA = NOPAT - capital charge = (ROIC - WACC) x invested capital

How it works

Net income charges for debt through interest but treats equity as free. EVA charges for all capital at the weighted cost. A positive EVA means the business earned more than its investors require. A negative EVA means it shrank value even if it reported a profit.

Practitioners adjust accounting figures before computing EVA, for example by capitalizing research and development or adding operating leases to invested capital. Apply the same adjustments every year so the trend is meaningful.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Which invested capital balance do I use?

Opening or average capital for the year. Use the same choice every period.

How does EVA tie to market value?

The present value of expected future EVA equals market value added: firm value less invested capital.

Can a growing firm have negative EVA?

Yes. Growth at an ROIC below WACC adds capital faster than it adds return.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

Related audit calculators

CalculatorFree Cash Flow Calculator: FCF, FCFF and FCFEFree cash flow, free cash flow to the firm and to equity from operating cash flow, capital spending, interest, tax and net borrowing.CalculatorCard Processing Effective Rate Calculator: Percent, Per-Item and Monthly FeesEffective card processing rate from percent fees, per-transaction fees and fixed monthly fees, with yearly cost and a flat-rate plan comparison.CalculatorCustomer Lifetime Value, LTV to CAC and CAC Payback CalculatorLifetime value on gross margin, the LTV to CAC ratio, CAC payback months and expected customer lifetime from monthly churn.
For US CPA firms

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

  • First audit free, so you can judge the quality on a real file
  • Flat fee by entity size; messy books included
  • We work only with CPA firms, never their clients
See how it works →

* required