WACC Calculator

Online Weighted Average Cost of Capital (WACC) calculator

Cost of Debt Calculation

$
$
$
%
$
$
%
%

Cost of Equity Calculation

%
%
%

Weight of Debt and Equity Calculation

$
$
$
%
%

WACC Calculation

%
$
$
%
%
%

Weighted Average Cost of Capital Calculator

  • WACC is an internal calculation to determine a company’s cost of capital.

    Formula:

    WACC =

    (
    E
    E + D
    x Re)+(
    D
    E + D
    x Rd x ( 1 - T ))

    where:
    E = Market value of the firm’s equity ($)
    D = Market value of the firm’s debt ($)
    Re = Cost of equity (%)
    Rd = Cost of debt (%)
    T = Tax rate (%)

    more about cost of equity click here, and for cost of debt click here

  • For example: suppose the market value of the firm’s equity is $1000, the market value of the firm’s debt is $200, cost of equity is 12%, cost of debt is 5%, and the corporate tax rate is 30%

    WACC =

    (
    E
    E + D
    x Re)+(
    D
    E + D
    x Rd x ( 1 - T )) = (
    1000
    1000 + 200
    x 12%)+(
    200
    1000 + 200
    x 5% x ( 1 - 30% )) = [(1000 ÷ 1200) x 0.12] + [(200 ÷ 1200) x 0.05 x (1 - 0.3)] = 0.1 + 0.00583 = 0.10583 = 10.583%