Enter the total operating profit and the tax rate. The calculator will determine the NOPAT or net operating profit after tax.

NOPAT Formula

The following formula is used to calculate the net operating profit after tax.

NOPAT = OP * (1-R)

  • Where NOPAT is net operating profit after tax
  • OP is the operating profit
  • R is the tax rate

NOPAT Definition

NOPAT is a measure of total operating profit after tax has been taken into account. It’s a useful business metric to analyze because it’s the true profit since no one can legally avoid taxes.

NOPAT Example

How to calculate NOPAT?

  1. First, determine the operating profit.

    Calculate the total operating profit.

  2. Next, determine the tax rate.

    Determine the effective tax rate.

  3. Finally, calculate the NOPAT.

    Calculate the NOPAT using the formula above.


What is NOPAT?

NOPAT is short for net operating profit after tax. Net operating profit is a measure of profit directly from operations.

nopat calculator
nopat formula