WACC Calculator
Compute a company's weighted average cost of capital from equity and debt values and their costs.
What this calculator does
The WACC Calculator estimates your result instantly from the values you enter, using standard investing & wealth formulas. Compute a company's weighted average cost of capital from equity and debt values and their costs. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
Result
About WACC Calculator
The WACC Calculator works out a company's weighted average cost of capital — the blended rate it pays to finance itself across equity and debt. It weights the cost of equity by equity's share of total capital and the after-tax cost of debt by debt's share, then adds the two together.
WACC is the discount rate at the heart of company valuation: projects and cash flows are judged against it, and a return above WACC creates value while a return below it destroys value. Because interest is tax-deductible, the debt portion is reduced by one minus the tax rate. The calculator applies that weighting directly to the five figures you enter.
Enter the market value of equity and debt, the cost of equity, the cost of debt, and the tax rate, press Calculate, and read the WACC.
Formula & Mathematical Calculation
WACC = (E ÷ V) × Re + (D ÷ V) × Rd × (1 − Tax Rate) where V = E + D
Calculation Example
With $600,000 equity and $400,000 debt (V = $1,000,000), a 11.2% cost of equity, a 6% cost of debt, and a 25% tax rate: (0.6 × 11.2%) + (0.4 × 6% × 0.75) = 6.72% + 1.8% = 8.52%.
Key Benefits
- Blends the cost of equity and after-tax cost of debt by capital weight.
- Applies the tax shield to the debt portion via one minus the tax rate.
- Produces the discount rate used to value projects and cash flows.
- Requires total capital above zero, avoiding a divide-by-zero result.
How to Use this Calculator
-
Enter the equity and debt values
Type the market value of equity and the market value of debt in their fields, for example 600000 and 400000. -
Enter the costs
Type the cost of equity and the cost of debt as percentages, for example 11.2 and 6. -
Enter the tax rate
Type the tax rate as a percentage in the Tax Rate field, for example 25. -
Press Calculate
The tool weights each cost by its share of total capital, applies the tax shield to debt, and sums the two for the WACC.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- WACC Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.
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