NOPAT Calculator

Operating Revenue

$

Operating Expenses

$

Depreciation & Amortization

$

Tax Rate (%)

%

Interest Expense (Optional)

$

NOPAT Calculation Results

EBIT

Tax Shield

Taxes on EBIT

NOPAT

Calculation Breakdown:

Operating Revenue:

Less: Operating Expenses:

Less: Depreciation & Amortization:

EBIT (Earnings Before Interest & Taxes):

Tax Shield (Interest × Tax Rate):

NOPAT:

About NOPAT

What is NOPAT?

Net Operating Profit After Tax (NOPAT) represents a company's after-tax operating profit, excluding the effects of financial leverage. It measures the cash earnings that a company generates from its operations after paying taxes, but before considering debt financing costs.

Formula:

NOPAT = EBIT × (1 - Tax Rate) + Tax Shield
Where: EBIT = Revenue - Operating Expenses - Depreciation
Tax Shield = Interest Expense × Tax Rate

Key Uses:

Valuation analysis and DCF models
Economic Value Added (EVA) calculations
Comparing operational efficiency across companies
Performance measurement independent of capital structure

Important Notes:

• NOPAT excludes the impact of debt financing
• Used to evaluate pure operating performance
�� Essential for calculating ROIC and EVA
• Tax shield adds back tax benefits from interest deductions

NOPAT Calculator