Return on Invested Capital Formula: Excel, DAX, Calculator & Example

Simple formula

NOPAT / Invested Capital

The formula uses these inputs:

NOPAT: enter your value in the calculator or spreadsheet.
Invested Capital: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR(B2/C2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR(B2/C2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

Return on Invested Capital =
DIVIDE(
    [NOPAT],
    [Invested Capital]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS return_on_invested_capital
FROM kpi_data;

Return on Invested Capital calculator

NOPAT Invested Capital

Result—

How to interpret Return on Invested Capital

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

Mixing different time periods in the numerator and denominator.
Using totals that do not match the KPI definition used by your company.
Comparing results across teams or industries without context.

Related KPI formulas

Frequently asked questions

What is the Return on Invested Capital formula?

The common Return on Invested Capital formula is: NOPAT / Invested Capital.

How do you calculate Return on Invested Capital in Excel?

Use this Excel formula pattern: =IFERROR(B2/C2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.

Return on Invested Capital Formula

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