# Net Operating Profit After Tax Calculator

The Net Operating Profit After Tax (NOPAT) is a financial measure of profitability .The Net Operating profit After tax equal to Operating income multiple 1number of value less than tax rate.

Formula us,

NOPAT = operating income * (1 – tax rate)

let us consider,

• The corporate tax rate is also known as the effective tax rate. It is the percentage of a company’s income it pays in taxes.

Tax Rate Formula,

tax rate = total tax / earnings before tax

• Earnings before tax is the income statement by dividing the total tax expenses by the company’s earnings before taxes.
• The operating income is also known as the operating profit. It measures the profits a company generates from its core business functions,

calculate the Operating Income Formula,

1. operating income = gross profit – operating expense

where:

gross profit = total revenue – cost of goods sold

OR

1. operating income = net income + non-operating income loss – non-operating income gain + interest expense + tax

## Calculate NOPAT

1. The simple NOPAT formula

NOPAT = operating income * (1 – tax rate)

I operating income of \$800,000 and a corporate tax rate of 14%.

NOPAT  = (8,00,000)*(1-0.14)