Economic Profit
Result
Calculated result
40000
Based on the values entered.
↗ Finance
Economic Profit — free online calculator.
Formula
EBIT*(1-tax_pct/100)-capital*(WACC_pct/100)
- Economic Profit calculates its result from EBIT, Tax rate (%), Capital, WACC (%). It uses the formula EBIT*(1-tax_pct/100)-capital*(WACC_pct/100). Change any input to recalculate the result instantly.
- The main inputs are EBIT, Tax rate, Capital, WACC. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Economic Profit
Inputs
- EBIT: 100000
- Tax rate: 20 %
- Capital: 500000
- WACC: 8 %
Using EBIT = 100000, Tax rate (%) = 20, Capital = 500000, WACC (%) = 8, the calculated result is 40000.
Sample result: Calculating…
Frequently asked questions
What does the Economic Profit calculate?
Economic Profit — free online calculator.
Which values should I enter?
Enter EBIT, Tax rate, Capital, WACC using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: EBIT*(1-tax_pct/100)-capital*(WACC_pct/100).
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.