Economic Profit Calculator

Total Revenue ($):

Total Cost ($):

Opportunity Cost ($):

Economic Profit:

Understanding the true profitability of your business is crucial for making informed decisions. Our Economic Profit Calculator is designed for business owners, financial analysts, and entrepreneurs who want to assess the real economic value generated by their ventures. This tool is particularly helpful when you need to evaluate performance beyond traditional accounting profits, considering the cost of capital and opportunity costs.

With our Economic Profit Calculator, you can:

• Determine the economic profit by factoring in the cost of capital.
• Gain insights into the efficiency of resource utilization.
• Identify areas for improvement and strategic investment.
• Compare economic performance across different periods or projects.

How to Use

1. Enter the net operating profit after taxes (NOPAT) for your business.
2. Input the total capital invested in the business.
3. Specify the weighted average cost of capital (WACC) as a percentage.
4. Click "Calculate" to see the economic profit result.
5. Analyze the output to understand your business's economic performance.

Our Economic Profit Calculator is a valuable tool for gaining deeper insights into your business's financial health. Explore our other calculators and resources to further enhance your strategic planning and decision-making processes.