**How to calculate ROIC in Excel**

ROIC stands for return on invested capital. Return of invested capital is one of the most basics measures in the business. ROIC is a profitability indicator which is used to measure the efficiency of the company, regardless of the structure of its assets or extraordinary factors. Return of invested capital should be higher than weighted average cost of capital.

Let’s build the return on capital employed calculator in Excel. To calculate ROIC in Excel first you need some data. You need NOPAT and Invested Capital.

Copy and paste this roi formula in cell B4: **=B2/B3**

This formula will calculate the ROIC for data you place in cells B2 and C2 and is based on roi equation formula:

**ROIC = NOPAT / Invested Capital**

Remember to format ROIC as Percentage. Click B4 cell > click CTRL + 1 keyboard shortcut > click Percentage with 2 decimal places