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