Economic Value Added (EVA) Calculator

Calculate the Economic Value Added (EVA) of a company using EBIT, tax rate, WACC, and invested capital. Enter values for instant results.

Result Economic Value Added 0

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Formula

Economic value added = Ebit * (1 - Tax rate) - (Wacc * Invested capital)

Example

A company earns $500,000 in EBIT and faces a 30% tax rate. Its weighted average cost of capital (WACC) is 8%, and the invested capital is $2,000,000. After accounting for taxes and the cost of capital, the economic value added is $190,000.

Meaning

Economic Value Added (EVA) is a measure that calculates the difference between a company's net operating profit after taxes and its capital costs. It essentially measures how much value a company adds to shareholders' equity annually, making it an important metric for investors and businesses alike.