Measure profit left after charging for the capital used.
Please do not make financial decisions based on these results.
What is the Economic Value Added Calculator?
Measure profit left after charging for the capital used. To use the Economic Value Added Calculator, enter nopat, invested capital, wacc; it returns economic value added, capital charge, roic, and shows them instantly as you type.
Where the Economic Value Added Calculator fits
Measure profit left after charging for the capital used. The main figure it returns is the Economic value added, worked out from the values you enter.
It belongs with the other stocks & equity analysis tools. If you are comparing options or checking a result from another angle, try the Enterprise Value Calculator, EV to Sales Calculator — Enterprise Value to Sales or the Intrinsic Value Calculator.
How to use the Economic Value Added Calculator
- Enter your numbers. Start with NOPAT ($), Invested capital ($), WACC (%). Take price and share figures from the latest filing or quote. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Economic value added, and the cards below show Capital charge, ROIC. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Economic Value Added Calculator using the default values shown in the calculator above:
Inputs
| NOPAT ($) | 1,200,000 |
|---|---|
| Invested capital ($) | 9,000,000 |
| WACC (%) | 9 |
Results
| Economic value added | $390,000.00 |
|---|---|
| Capital charge | $810,000.00 |
| ROIC | 13.33% |
With these inputs the calculator returns Economic value added: $390,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising NOPAT ($) from 1,200,000 to 1,440,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Economic value added | $390,000.00 | $630,000.00 | +61.5% |
| Capital charge | $810,000.00 | $810,000.00 | 0% |
| ROIC | 13.33% | 16% | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Economic Value Added Calculator reports Economic value added, capital charge and roic. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What does positive EVA mean?
The firm earned more than its cost of capital and created shareholder value.
Which valuation ratio should I trust?
No single ratio is enough. Compare several multiples with the company’s own history and its industry peers.
Is a high dividend yield good?
Not automatically. A very high yield can signal a falling price or a dividend that may be cut.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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