WACC Calculator
Weighted average cost of capital.
Enter your values
Enter the market value of equity in $.
Enter the market value of debt in $.
Enter the cost of equity in %.
Enter the cost of debt in %.
Enter the tax rate in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- WACC
- 10.24%
- Equity weight
- 72.7%
- Debt weight
- 27.3%
- After-tax cost of debt
- 5.53%
Quick answer
WACC is the blended return a company must earn to satisfy both lenders and shareholders.
WACC = E/V × Re + D/V × Rd × (1 − t)
At a glance
| What it does | Weighted average cost of capital. |
|---|---|
| Category | Business |
| Inputs needed | Market value of equity, Market value of debt, Cost of equity, Cost of debt, Tax rate |
| Main output | WACC |
| Formula | WACC = E/V × Re + D/V × Rd × (1 − t) |
| Cost | Free — no sign-up, no download |
How to use the WACC Calculator
- 1Enter market values of equity and debt.
- 2Enter the cost of each.
- 3Add the corporate tax rate for the debt shield.
Inputs explained
- Market value of equity($)
- Enter the market value of equity in $.
- Market value of debt($)
- Enter the market value of debt in $.
- Cost of equity(%)
- Enter the cost of equity in %.
- Cost of debt(%)
- Enter the cost of debt in %.
- Tax rate(%)
- Enter the tax rate in %.
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.
What do I need to enter into the WACC Calculator?
Just 5 values: market value of equity, market value of debt, cost of equity, cost of debt, tax rate. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the WACC Calculator work out the answer?
WACC is the blended return a company must earn to satisfy both lenders and shareholders. It applies the formula WACC = E/V × Re + D/V × Rd × (1 − t) and shows the working so you can check each step by hand.
Is the WACC Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.