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WACC calculator

Compute the weighted average cost of capital — the blended after-tax rate a company pays to finance its assets with equity and debt. WACC is the standard discount rate for valuing projects and companies: it weights the cost of equity and the tax-shielded cost of debt by their market values.

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The WACC calculator turns Cost of equity (Re), Market value of equity (E), Cost of debt (Rd), Market value of debt (D), Corporate tax rate (Tc) into WACC, Equity weight, Debt weight, instantly and for free. For instance, with Cost of equity (Re) = 10%, Market value of equity (E) = $8,000,000.00, Cost of debt (Rd) = 5%, Market value of debt (D) = $2,000,000.00 and Corporate tax rate (Tc) = 21% it returns WACC = 8.79%, Equity weight = 80% and Debt weight = 20%.

How to use it

  1. Enter your values: Cost of equity (Re), Market value of equity (E), Cost of debt (Rd), Market value of debt (D), Corporate tax rate (Tc).
  2. Read the result instantly: WACC, Equity weight, Debt weight.

Frequently asked questions

What does the WACC calculator actually compute?

It takes Cost of equity (Re), Market value of equity (E), Cost of debt (Rd), Market value of debt (D) and Corporate tax rate (Tc) and derives WACC, Equity weight and Debt weight from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

5 values: Cost of equity (Re) (%), Market value of equity (E) ($), Cost of debt (Rd) (%), Market value of debt (D) ($) and Corporate tax rate (Tc) (%). Nothing else is required — no account, no file upload.

Can you show a worked example?

With Cost of equity (Re) = 10%, Market value of equity (E) = $8,000,000.00, Cost of debt (Rd) = 5%, Market value of debt (D) = $2,000,000.00 and Corporate tax rate (Tc) = 21%, the calculator returns WACC = 8.79%, Equity weight = 80% and Debt weight = 20%. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using Cost of equity (Re) = 11%, Market value of equity (E) = $16,000,000.00, Cost of debt (Rd) = 6%, Market value of debt (D) = $4,000,000.00 and Corporate tax rate (Tc) = 23% instead, WACC goes from 8.79% to 9.72% — which is why it is worth testing a few scenarios rather than trusting a single figure.

Which units should I enter the values in?

Enter Cost of equity (Re) %, Cost of debt (Rd) % and Corporate tax rate (Tc) %.

What does it give for smaller values?

Scaled down to Cost of equity (Re) = 9%, Market value of equity (E) = $4,000,000.00, Cost of debt (Rd) = 5%, Market value of debt (D) = $1,000,000.00 and Corporate tax rate (Tc) = 19%, WACC comes out at 8.01%. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Comparing two investments that pay at different times, deciding whether a project clears its cost of capital, and sanity-checking a valuation someone else produced.

What is the most common mistake?

Trusting a valuation without asking what share of it comes from the terminal value. Past 70%, the answer is an assumption about the distant future dressed up as a calculation.

What is the difference between the WACC calculator and the Cost of equity calculator (CAPM & DDM)?

This one returns WACC and Equity weight; the Cost of equity calculator (CAPM & DDM) returns Cost of equity — CAPM and Cost of equity — DDM. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

DCF calculator (discounted cash flow) is the closest one after this: Value a company from its projected free cash flows: discount each year at the WACC, add a Gordon terminal value, then work down to equity value per share.

Further reading

All guides →
ExplainerWACC Explained, and Why the Number Is Mostly an AssumptionWACC = E/V × Re + D/V × Rd × (1 − T). The tax shield makes debt genuinely cheaper, and the cost of equity comes from CAPM — whose beta and equity risk premium are estimates that move the answer by whole percentage points, and the valuation by a quarter.ExplainerPresent Value vs Future Value: Why Money in Thirty Years Is Worth About an Eighth of Its FacePV = FV ÷ (1+r)^n. At 7 percent over 30 years the discount factor is 0.131, so a promise of $100,000 in thirty years is worth $13,137 today — and $41,199 if you assume 3 percent instead.ComparisonNPV vs IRR: What to Do When the Two Rules Rank the Same Projects DifferentlyIRR picks the $10,000 project returning 50 percent; NPV picks the $100,000 project returning 30 percent, worth $20,370 against $3,889. And a mine with a cleanup cost has two IRRs, 10 and 20 percent, so the rate answers nothing.GuideHow Crypto Tax Is Calculated: The Principles That Apply EverywhereRates differ by country, the mechanics rarely do: a disposal triggers a gain, the gain is proceeds minus cost basis, and staking is income. Here is the calculation and where jurisdictions diverge.GuideBuying Back Retirement Quarters or Points: From What Age It Stops PayingThe usual advice is that a buy-back gets worse with age, because the price rises. The French scale is written to be actuarially neutral, so that is not quite what is happening — and once you see what actually moves the answer, the decision changes. Computed on the current parameters.ComparisonSelling a Second Home: Only One of These Three Countries Rewards Holding ItFrance tapers the tax on a property gain to zero over twenty-two and then thirty years. Spain does not taper at all for anything bought after 1994. Portugal has no taper either — it has an inflation index and a fifty per cent haircut, which is a different animal entirely.