Enter the net operating profits after tax, the WACC, and the total capital invested into the calculator to determine the total economic value added.

## EVA Formula

The following formula is used to calculate the economic value-added.

EVA = NOPAT - (WACC * CI )
• Where EVA is the economic value added
• NOPAT is the net operating profits after tax
• WACC is the weighted average cost of capital
• CI is the capital invested

To calculate the economic value added, multiply the WACC by the capital invested, then subtract the result from the net operating profits after tax.

## EVA Definition

EVA is short for economic value added is a measure of the profit added to the economy by a business.

## EVA Example

How to calculate EVA?

1. First, determine the NOPAT.

Calculate the net operating profits after tax generated by the business.

2. Next, determine the WACC.

Calculate the weighted average cost of capital of the business.

3. Next, determine the CI.

Calculate the total capital that has been invested in the project.

4. Finally, calculate the EVA.

Enter the values from steps 1-3 into the EVA formula above.

## FAQ

What is EVA?

EVA stands for economic value-added and it is a financial measure that indicates how profitable a particular business or project.