Net Operating Profit After Tax Calculator

The net operating profit after tax calculator calculates the after-tax profit from the operations of a company. To clarify, net operating profit is net earnings generated from the core business operations of the company. And it is a difference between the revenues from operations and expenses which are directly attributable to such core activities of the business. NOPAT can be used as a comparison tool for two or more entities falling under the same industry differently leveraged. If the company has raised funds by way of debt, then its cost (that is, interest expense) is not included in the calculation of net operating profit after tax. Basically, net operating profit after tax is the net income of a company considering it as an unleveraged one.

Similarly, we ignore all non-operating income and expenses from its calculation.

For calculating net operating profit after tax, consider the following formula:

Net Operating Profit after Tax = Operating Profit * (1 – Tax Rate).

Net Operating Profit after Tax Calculator

How to Calculate using Calculator?

The user has to insert the following data into the calculator, and a simple click will provide the instant result of a calculation.

Operating Profit – The operating profit of a company includes the revenue from operations only deducted from operating expenses that can be directly associated with the operations. All financing and investing activities related to income and expenses are excluded.

The formula for calculating operating profit is as follows:

Operating Profit = Gross Profit – Operating Expenses

Tax Rate – It is the rate of tax applicable to the company for which you are calculating net operating profit after tax.

Excel Calculator – Net Operating Profit After Tax

You can also download our excel based calculator for net operating profit after tax.

Excel Calculator For Net Operating Profit After Tax (12 downloads )


Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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