Economic Value Added (EVA) Calculator
Does my business create true economic shareholder wealth after paying the full opportunity cost of capital (WACC)?
Financial Inputs
Net working capital plus net fixed assets.
Section 115BAA corporate tax rate.
Blended cost of equity and debt capital.
Economic Value Added (EVA)
T
NOPAT (Net Operating Profit After Tax)
1,49,66,000
Annual Capital Charge (WACC × Capital)
1,25,00,000
Key Financial Takeaways
- The enterprise generated ₹24,66,000 in true Economic Value Added (EVA). Operating return of 15% exceeds the capital cost hurdle of 12.5% by an economic spread of +2.5%.
Frequently Asked Questions
How can a company report positive accounting net profit but negative EVA?
Accounting profit (PAT) only deducts interest on debt. It treats equity capital as free. EVA charges the company for the full cost of equity. If a firm earns 8% on capital while equity investors require 15%, the firm is destroying economic wealth even if reporting an accounting net profit.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
Need structured debt financing beyond standard bank models?
Our ex-banker team structures facilities from ₹2 Cr to ₹100 Cr+ across 50+ banking & NBFC partners, ensuring optimized pricing and covenants.