WACC Calculator - Weighted Average Cost of Capital

Calculate the Weighted Average Cost of Capital (WACC) for your company. WACC represents the average rate of return a company is expected to pay to all its security holders to finance its assets.

WACC Inputs

Cost of Equity (CAPM)

Risk-Free Rate (Rf)

10-year Treasury yield

Market Return (Rm)

Expected market return

Beta (β) Systematic risk measure

Cost of Debt

Interest Rate on Debt (%)

Pre-tax cost of debt

Corporate Tax Rate (%)

Effective tax rate

Capital Structure

Market Value of Equity ($)

Total equity value

Market Value of Debt ($)

Total debt value

Equity Weight (%) Auto-calculated

Debt Weight (%) Auto-calculated

Additional Options

Show Calculation Breakdown

WACC Analysis Results

Cost of Capital Components
Cost of Equity (Re)	0%
Cost of Debt (Rd)	0%
After-Tax Cost of Debt	0%

Capital Structure & WACC

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WACC Insights

WACC Formula: WACC = (E/V) × Re + (D/V) × Rd × (1 - Tc)
Cost of Equity (Re): Calculated using CAPM: Rf + β × (Rm - Rf)
Cost of Debt (Rd): Interest rate on debt, adjusted for tax shield
Tax Shield: Interest payments are tax-deductible, reducing effective cost of debt
Capital Structure: E/V = Equity weight, D/V = Debt weight
Interpretation: WACC is the minimum return a company must earn on its investments
Use Cases: Discount rate for NPV, valuation, and capital budgeting decisions

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