Personal Finance and Investing
WACC Calculator
WACC Calculator calculate weighted average cost of capital from market-value debt and equity financing.
Personal Finance and Investing
WACC Calculator
Calculate weighted average cost of capital from market-value debt and equity financing.
Formula
WACC = E/(D+E)*Re + D/(D+E)*Rd*(1-T).
About the WACC Calculator
Calculate weighted average cost of capital from market-value debt and equity financing.
How the WACC Calculator Works
Debt and equity market values create capital weights; the after-tax debt cost and equity cost are multiplied by those weights and added.
Formula
WACC = E/(D+E)*Re + D/(D+E)*Rd*(1-T).
The calculation runs in your browser. Values are validated for required ranges, compatible units, and method-specific restrictions before results are displayed.
Required Inputs
- Market value of equity (required).
- Market value of debt (required).
- Cost of equity (required) - enter in %.
- Pre-tax cost of debt (required) - enter in %.
- Marginal tax rate (required) - enter in %.
Results Reported
The result panel reports the final answer and the intermediate quantities needed to check the calculation:
- Equity weight (%)
- Debt weight (%)
- After-tax cost of debt (%)
- WACC (%)
WACC Calculator Example
Select Example Data in the calculator to load this reproducible input set:
| Input | Example value |
|---|---|
| Market value of equity | 600000 |
| Market value of debt | 400000 |
| Cost of equity | 10 % |
| Pre-tax cost of debt | 6 % |
| Marginal tax rate | 25 % |
How to Use the Calculator
- Confirm that the calculator title and formula match the quantity you need.
- Enter every required value using the unit shown with its field.
- Select Example Data to inspect a valid input set, or enter your own values and select Calculate.
- Review all reported values and the displayed formula before using the answer.
- Use Copy Result or Download CSV when you need a reusable record.
Accuracy and Limitations
A company may have preferred stock, multiple debt classes, changing tax shields, flotation costs, or target weights that require a fuller model.
Keep units consistent, use measurements that represent the actual situation, retain full precision during the calculation, and round only the final answer. Professional decisions may require current official rules, field measurements, laboratory methods, or specialist review.
Frequently Asked Questions
What does the WACC Calculator calculate?
Calculate weighted average cost of capital from market-value debt and equity financing.
Which formula does the WACC Calculator use?
WACC = E/(D+E)*Re + D/(D+E)*Rd*(1-T).
What should I verify before using this result?
A company may have preferred stock, multiple debt classes, changing tax shields, flotation costs, or target weights that require a fuller model.