What is ROIC?
Return on Invested Capital (ROIC) measures how efficiently a company generates profit from all the capital invested in it — both debt and equity — making it a key measure of a company’s competitive advantage and capital allocation skill.
The formula
ROIC = (NOPAT / Total Invested Capital) × 100. Comparing ROIC to a company’s cost of capital (WACC) shows whether it’s genuinely creating value: ROIC above WACC means value creation, below WACC means value destruction.
This calculator is for general financial-analysis education.
Last reviewed August 2026