ROIC Calculator

NOPAT (Net Operating Profit After Tax) = EBIT × (1 − tax rate). This calculator takes NOPAT as a direct input — calculate it from the income statement before entering it here.

Both measure return on total capital, but ROIC uses NOPAT (after-tax operating profit) in the numerator while ROCE typically uses EBIT (pre-tax). ROIC is often considered the more precise value-creation metric because it accounts for actual tax paid.

The total capital invested in the business's core operations — roughly equity plus interest-bearing debt, minus non-operating cash. This calculator takes it as a direct input; you'll need to calculate it from the balance sheet first.

Compare it to your Weighted Average Cost of Capital (WACC). ROIC above WACC means the business creates value; ROIC below WACC means it destroys value even if accounting profit is positive.