Wacc Calculator
Calculate the Weighted Average Cost of Capital (WACC) for a company. Inputs include cost of equity, cost of debt, tax rate, and market values of equity and debt.
Published by:
isCalculator Editorial Team
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How to Use the WACC Calculator
This calculator computes the Weighted Average Cost of Capital (WACC) — the blended cost of financing a company’s assets with equity and debt.
- Enter Cost of Equity (Re) — as a percentage (e.g., 10 for 10%). Must be non-negative.
- Enter Cost of Debt (Rd) — as a percentage (e.g., 5 for 5%). Must be non-negative.
- Enter Tax Rate (T) — as a percentage between 0 and 100 (e.g., 25 for 25%).
- Enter Market Value of Equity (E) — in dollars (e.g., 1,000,000). Must be positive.
- Enter Market Value of Debt (D) — in dollars (e.g., 500,000). Must be positive.
- Click "Calculate WACC".
Result: The WACC percentage appears in green. Below it, a breakdown shows the formula and intermediate weights.
Note: All inputs are required. Invalid entries (negative, zero, or out-of-range values) will show error messages in red.
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Frequently Asked Questions
WACC stands for Weighted Average Cost of Capital. It is the average rate of return a company is expected to pay to its security holders to finance its assets.
WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc), where E is market value of equity, V is total market value of equity and debt, Re is cost of equity, D is market value of debt, Rd is cost of debt, and Tc is corporate tax rate.
WACC is used as a discount rate for future cash flows in discounted cash flow (DCF) analysis to determine the present value of a company. It represents the minimum return a company must earn on its existing asset base to satisfy its creditors and investors.
