Economic Value Added (EVA) Calculator

Calculate EVA (Economic Value Added) from Operating Income and Cost of Capital

Input Fields

Operating Income

OI

$

Enter the operating income (before tax)

Tax Rate

TR

%

Enter the tax rate

Market Value of the Company Equity

MVEquity

$

Enter the market value of the company equity

Market Value of the Company Debt

MVDebt

$

Enter the market value of the company debt

Cost of Equity

COE

%

Enter the cost of equity

Cost of Debt

COD

%

Enter the cost of debt

Capital Invested

CI

$

Enter the capital invested in the business

CalculateReset

Calculate automaticallyIf enabled, the result will update automatically when you change any value.

Your Results

Total Market Value of the Company

Weighted Average Cost of Capital (WACC)

Net Operating Profit After Tax (NOPAT)

Economic Value Added (EVA)

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Economic Value Added (EVA) Formula

$$EVA = NOPAT – (Capital Invested \times WACC)$$

Where:

• EVA – Economic Value Added
• NOPAT – Net Operating Profit After Taxes
• Capital Invested – total capital invested in the business
• WACC – Weighted Average Cost of Capital

EVA is used to measure the value a company generates from its capital investment, considering both operational efficiency and capital costs. A positive EVA indicates that the company is generating returns above its cost of capital, creating value for shareholders. EVA is widely used in performance measurement, financial analysis, and value-based management to assess the real profitability of a business.