Overview
Enter EBIT and a tax rate to calculate Net Operating Profit After Tax (NOPAT): EBIT × (1 − tax rate). NOPAT represents a company's operating profit as if it had no debt - it strips out the effect of financing decisions (interest) while still applying taxes, which makes it a cleaner measure for comparing operating performance across companies with different capital structures. NOPAT is also a direct input to Economic Value Added: EVA = NOPAT − (invested capital × WACC), so if you're building toward an EVA figure, start here. Tax rate must be between 0 and 100. Runs entirely client-side, and this is an informational estimate, not financial advice.
Best for: Calculating after-tax operating profit, independent of financing structure, often as an input to EVA
How to use this tool
- Enter EBIT. Earnings before interest and taxes - use the EBIT Calculator if you need to derive it first.
- Enter tax rate (%). The effective tax rate applied to operating profit, between 0 and 100.
- Read NOPAT. EBIT after tax, with interest expense excluded entirely.
Frequently asked questions
Net income subtracts interest expense as well as taxes, so it reflects a company's specific financing structure. NOPAT deliberately excludes interest, taxing operating profit as if the company had no debt - which makes it more useful for comparing companies with different amounts of leverage.
Economic Value Added is calculated as NOPAT minus a capital charge (invested capital × WACC). NOPAT is the starting profit figure that charge gets subtracted from, so an accurate NOPAT is a prerequisite for a meaningful EVA - see the Economic Value Added (EVA) Calculator.
The EBIT Calculator derives EBIT from either revenue minus COGS and operating expenses, or from net income plus interest and taxes - use whichever inputs you have on hand, then bring the result here.