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Economic Value Added (EVA) Calculator

This calculator helps you determine the Economic Value Added (EVA), a key financial performance metric that calculates a company's true economic profit. EVA considers both operating income and the cost of capital, providing a clearer picture of value creation above and beyond the cost of capital.

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

Input Fields
OI
$
Enter the operating income (before tax)
TR
%
Enter the tax rate
MVEquity
$
Enter the market value of the company equity
MVDebt
$
Enter the market value of the company debt
COE
%
Enter the cost of equity
COD
%
Enter the cost of debt
CI
$
Enter the capital invested in the business
If enabled, the result will update automatically when you change any value.

Economic Value Added (EVA) Formula

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.

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