WACC Calculator

Calculate Weighted Average Cost of Capital.

WACC Calculator

Equity Information

Debt Information

WACC Results

WACC

Total Firm Value

Equity Weight

Debt Weight

Component Market Value Weight Cost After-Tax Cost Contribution
Equity
Debt
Preferred Stock
Total 100%

WACC Formula & Information

Basic WACC Formula:

WACC = (E/V × Re) + (D/V × Rd × (1-T))

Where:

  • E = Market value of equity
  • D = Market value of debt
  • V = E + D (Total firm value)
  • Re = Cost of equity
  • Rd = Cost of debt
  • T = Tax rate

Key Points:

  • • WACC represents the average rate of return a company must pay to finance its assets
  • • Used as a discount rate for DCF valuations
  • • Debt interest is tax-deductible, reducing effective cost
  • • Lower WACC generally indicates better financial health
  • • Should be recalculated as capital structure changes

Common Uses:

  • • Company valuation (DCF models)
  • • Investment decision making
  • • Performance evaluation
  • • Capital budgeting

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