# Capital Employed Calculator

###### Updated: Jun 10, 2018

Capital Employed Calculator is a tool that evaluates all the assets employed in a business

Capital Employed:
..

#### Background Information

What does Capital Employed mean?
Capital Employed is the total amount of investment made for running the business. The term âCapital Employedâ has a wider meaning and includes funds coming from both the owners and lenders, i.e., it covers both equity and debt.
Formula
Capital Employed = Fixed Assets + Non-current Investments + Current Assets â Current Liabilities
Example

A companyâs balance sheet indicates the following:-

#### Equity and Liabilities

1. Shareholderâs Funds
1. Share Capital: $400000 2. Reserves and Surplus:$100000
2. Non-Current Liabilities
1. Long-term Borrowings: $150000 3. Current Liabilities:$50000
Total: $700000 #### Assets 1. Non-Current Assets 1. Fixed Assets:$400000
2. Non-current Investments: $100000 2. Current Assets:$200000
Total: $700000 According to the formula, Capital Employed is:- • = 400000 + 100000 + 200000 - 50000 • =$650000