Free · Equity investment calculators 📈

After-Tax Operating Profit on Capital Calculator

Calculate ROIC using EBIT, an assumed tax rate and debt plus equity.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

EBIT of 100,000 at a 25% assumed tax rate gives after-tax operating profit of 75,000. Dividing by 300,000 equity plus 200,000 debt gives ROIC of 15%.

NOPAT = EBIT × (1 − tax rate); ROIC = NOPAT ÷ (debt + equity)

Worked example

Enter these known values and leave the other values blank.

EBIT
100000 USD
Tax rate
25 %
Equity
300000 USD
Debt
200000 USD
NOPAT
75000 USD
Invested capital
500000 USD
ROIC
15 %

Assumptions and limitations

  • The denominator is the supplied debt plus equity. It does not automatically subtract cash or average opening and closing capital. Use consistent periods and disclose those choices when comparing with another ROIC measure.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Which invested-capital definition does this use?

The denominator is the supplied debt plus equity. It does not automatically subtract cash or average opening and closing capital. Use consistent periods and disclose those choices when comparing with another ROIC measure.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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