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

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## 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?

**First, determine the operating profit.**Calculate the total operating profit.

**Next, determine the tax rate.**Determine the effective tax rate.

**Finally, calculate the NOPAT.**Calculate the NOPAT using the formula above.

## FAQ

**What is NOPAT?**

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