WACC Calculator

Online Weighted Average Cost of Capital (WACC) calculator

Cost of Debt Calculation

Interest Expense

$

Short Term Debt

$

Long Term Debt

$

Cost of Debt

%

Income Tax Expense

$

Income Before Tax

$

Effective Tax Rate

%

Cost of Debt * (1-T)

%

Cost of Equity Calculation

Risk-Free Rate

%

Beta

Market Return

%

Cost of Equity

%

Weight of Debt and Equity Calculation

Total Debt

$

Market Cap

$

Total

$

Weight of Debt

%

Weight of Equity

%

WACC Calculation

WACC

%

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Equity

$

Debt

$

Cost of Equity

%

Cost of Debt

%

Tax Rate

%

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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%

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