THE NUMORIX GUIDE
How to use the EVA Calculator
Last reviewed September 14, 2026
What this calculator does
Economic Value Added is calculated as EVA = NOPAT - capital charge, where capital charge = total capital x WACC/100.
Formula and method
Economic Value Added is calculated as EVA = NOPAT - capital charge, where capital charge = total capital x WACC/100. The engine treats NOPAT as an already prepared after-tax operating-profit input, calculates the charge from the entered capital base and WACC, and reports positive, zero, or negative value creation.
Variables and inputs
Enter NOPAT and Total Capital as dollar amounts for the same period and WACC as a percentage. The result is a dollar amount. The UI also displays the capital charge as total capital multiplied by WACC/100.
Worked example
With NOPAT of $150,000, total capital of $1,000,000, and WACC of 10%, capital charge = 1,000,000 x 0.10 = $100,000. EVA = 150,000 - 100,000 = $50,000, so the engine reports positive value creation.
How to interpret the result
Positive EVA means the entered operating profit exceeds the modeled dollar cost of the capital employed. Zero means the return just covers that charge, and negative EVA means the entered operation falls short under the selected definitions; this is an economic-profit lens, not a stock-price forecast.
Common mistakes to avoid
Enter NOPAT, not pre-tax operating profit or net income, and keep the capital base and profit period aligned. Enter 10 for a 10% WACC. Do not mix a market-value WACC with an incompatible book-capital definition without documenting the choice.
Assumptions and limitations
The engine does not calculate NOPAT, WACC, invested-capital adjustments, tax effects, leases, goodwill, inflation, or capital allocation. EVA is sensitive to accounting policy and the chosen capital base, and a positive value does not by itself establish a good investment or a sustainable competitive advantage.