WACC Calculator
Weighted average cost of capital.
Enter your values
ⓘ Live results
Results
- WACC
- 10.24%
- Equity weight
- 72.7%
- Debt weight
- 27.3%
- After-tax cost of debt
- 5.53%
Quick answer
WACC is the blended return a company must earn to satisfy both lenders and shareholders.
WACC = E/V × Re + D/V × Rd × (1 − t)
How to use the WACC Calculator
- 1Enter market values of equity and debt.
- 2Enter the cost of each.
- 3Add the corporate tax rate for the debt shield.
Worked example
Using the values the calculator loads with:
Inputs
- Market value of equity8000000 $
- Market value of debt3000000 $
- Cost of equity12 %
- Cost of debt7 %
- Tax rate21 %
Results
- WACC10.24%
- Equity weight72.7%
- Debt weight27.3%
- After-tax cost of debt5.53%
Frequently asked questions
Why is debt cheaper?
Interest is tax deductible and lenders take less risk than shareholders.
What is WACC used for?
Discounting cash flows in NPV and investment appraisal.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.