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

- Economic Profit Calculator
- WACC Calculator (Weighted Average Cost of Capital
- Economic Impact Calculator
- AFN (Additional Funds Needed) Calculator
- ICER (Incremental Cost-Effectiveness Ratio) Calculator

## 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?

**First, determine the NOPAT.**Calculate the net operating profits after tax generated by the business.

**Next, determine the WACC.**Calculate the weighted average cost of capital of the business.

**Next, determine the CI.**Calculate the total capital that has been invested in the project.

**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.