NOPAT Calculator - Net Operating Profit After Tax

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Choose the financial figure you have available. All methods produce the same NOPAT when supplied with consistent data.
Earnings Before Interest and Taxes: your operating profit before financing costs and income tax.
The effective (actual) corporate income tax rate. The US federal statutory rate is 21%; the blended rate including state taxes is often 25-27%.
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Optional. Enter total revenue to calculate NOPAT Margin (NOPAT / Revenue). Leave blank or zero to skip.
Total capital deployed in operations: equity plus net debt (or total assets minus non-interest-bearing current liabilities). Leave blank or zero to skip EVA and ROIC.
Weighted Average Cost of Capital: the blended minimum return required by debt and equity investors. Used to compute EVA.
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NOPAT
$395,000

Net Operating Profit After Tax: operating profit with financing effects removed.

EBIT (Operating Income)$500,000
EBIT$500,000
NOPAT$395,000

NOPAT is 395,000, the capital-structure-neutral measure of operating profitability.

  • NOPAT isolates operating performance by stripping out interest expense and measuring the tax burden on operations alone. Your EBIT of 500,000 becomes 395,000 after applying a 21.0% effective tax rate.

Next stepAdd Invested Capital and WACC to calculate EVA and ROIC, the two metrics most closely linked to long-run equity value.

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