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Eva is the abbreviation of economic value-added. Eva is the measure of the actual financial performance of a company by comparing the cost of raising its capital with its net operating profit.

## Formula of Economic Value Added Calculator

EVA = NOPAT – (Invested capital * WACC)

Where,

NOPAT = Net Operating Profit After Tax. It is generally listed on a company's income statement, or you can calculate it to assess the operating efficiency of the company.

Investment Capital = funds invested by shareholders for equity, bond-holders, and lenders at the beginning of the investment period.

WACC = firm's weighted average cost of capital. It is generally provided as a public record, and the average rate of return a company expects to pay its investors.

Note:

### Example

If you want to assess whether an investment of your company made in 2018 created value to their portfolio or not. The startup NOPAT is $50,000, the cost of investment capital is 20%, and the expanded capital is$350,000.

Given data

NOPAT = $50,000 Investment Capital =$350,000
WACC = 20%

To Find

Economic Value-Added (EVA) = ?

Solution

By using the formula listed below, we will find the economic value added:

EVA = NOPAT – (Invested capital * WACC)

Putting values in the formula:

EVA = $50,000 – ($350,000 * 20%)
EVA = $50,000 –$70,000
EVA = -\$20,000

### How to use the Economic Value Added Calculator?

The steps to use the economic value-added calculator are as follows:

Step 1: Enter the value of NOPAT in the first required input.

Step 2: Enter the value of invested capital in the second required input.

Step 3: Enter a value of WACC in the third required input.

Step 4: The calculator will automatically display an answer on the screen.

### Calculator use

You can Calculate Your Economic Value Added (EVA) by using our EVA calculator. Just insert the value in the required input fields and the value of EVA is shown in the output field.