# Economic Value Added Calculator (EVA)

URL: https://speedycalculator.com/calculators/finance/economic-value-added/
Last updated: 2026-10-25

> The economic value added calculator measures the profit a company makes above the full cost of the capital it uses – NOPAT minus invested capital times WACC.

## Inputs

- NOPAT
- Invested capital
- Invested capital
- Total assets
- Current liabilities
- WACC (%)

## Results

- Invested capital
- Capital charge
- Economic value added (EVA)
- Return on invested capital

## Formula

```
Invested capital = total assets − current liabilities
EVA = NOPAT − invested capital × WACC
```

## Explanation

Accounting profit ignores the cost of equity; EVA charges for all capital. A company can report profits yet destroy value if its returns fall below its cost of capital. EVA is used for performance measurement and executive pay.

### How to use the Economic Value Added Calculator

- **NOPAT**
- **Invested capital**
- **Invested capital**
- **Total assets**
- **Current liabilities**
- **WACC**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter NOPAT, invested capital (or total assets and current liabilities) and WACC.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterNOPATAmount in your currencyInvested capitalChoose one: Enter directly, Total assets − current liabilitiesInvested capitalAmount in your currencyTotal assetsAmount in your currencyCurrent liabilitiesAmount in your currencyWACCIn %

### What each result means

- **Capital charge** = [Invested capital]×[WACC]÷100
- **Economic value added (EVA)** = [NOPAT] - [Capital charge]
- **Return on invested capital** = [NOPAT]÷[Invested capital]×100

### Example values

How the main result changes when **NOPAT** changes and everything else stays at the example values above:

NOPATEconomic value added (EVA)1,600,000-650,0002,400,000150,0003,200,000950,0004,000,0001,750,0004,800,0002,550,0006,400,0004,150,000

## Worked example

Inputs — NOPAT: $3,200,000; Invested capital: Total assets − current liabilities; Invested capital: $25,000,000; Total assets: $30,000,000; Current liabilities: $5,000,000; WACC: 9 %.

Results — Invested capital = $25,000,000.00; Capital charge = $2,250,000.00; **Economic value added (EVA) = $950,000.00**; Return on invested capital = 12.8 %.

## FAQ

**What is EVA?**
Profit after deducting a charge for all capital employed.

**What does negative EVA mean?**
The company earns less than its cost of capital – it destroys value.

**How is EVA related to ROIC?**
EVA = (ROIC − WACC) × invested capital.

**What formula does the Economic Value Added Calculator use?**
Invested capital = total assets − current liabilities.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)