NOPAT Calculator
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,
- operating income = gross profit – operating expense
where:
gross profit = total revenue – cost of goods sold
OR
- operating income = net income + non-operating income loss – non-operating income gain + interest expense + tax
Calculate NOPAT
- The simple NOPAT formula
NOPAT = operating income * (1 – tax rate)
I operating income of $800,000 and a corporate tax rate of 14%.
NOPAT = (8,00,000)*(1-0.14)
The answer is NOPAT 798,880$