Financial Calculators
WACC Calculator
Calculate the Weighted Average Cost of Capital from equity, debt, their costs, and the tax rate locally in your browser.
Find your firm's blended cost of capital.
Enter the market value of equity, the market value of debt, the cost of equity, the cost of debt, and the corporate tax rate. The calculator computes WACC = (E/V × Re) + (D/V × Rd × (1 − T)), where V = E + D. The after-tax cost of debt and the equity and debt weights are shown alongside the result. This private browser estimate is for general planning only, not financial advice; your values are not uploaded or stored.
Frequently Asked Questions
Everything you need to know about this tool, how it works, and privacy.
What is WACC?
WACC (Weighted Average Cost of Capital) is the average rate a company expects to pay to finance its assets, weighted by the proportion of equity and debt in its capital structure. It represents the minimum return a company must earn to satisfy its investors and creditors.
What formula does the WACC calculator use?
WACC = (E/V × Re) + (D/V × Rd × (1 − T)), where E is the market value of equity, D is the market value of debt, V = E + D is the total capital, Re is the cost of equity, Rd is the cost of debt, and T is the corporate tax rate. The result includes the equity and debt weights and the after-tax cost of debt.
How do I determine the cost of equity?
The cost of equity is the return required by equity investors. It is often estimated using the Capital Asset Pricing Model (CAPM): Re = Rf + β × (Rm − Rf), where Rf is the risk-free rate, β is the equity beta, and Rm is the expected market return. You can also use the dividend discount model or other methods.
Why is the cost of debt adjusted for tax?
Interest payments on debt are typically tax-deductible, so the effective cost of debt to the company is reduced by the tax shield. The after-tax cost of debt is Rd × (1 − T), where T is the corporate tax rate expressed as a decimal.
What market values should I use for equity and debt?
Use the current market value of equity (share price × shares outstanding) and the market value of debt (which may differ from book value). If market values are unavailable, book values can be used as an approximation, but the result will be less accurate.
Is my data uploaded or stored?
No. All calculations run locally in your browser. CodeASystem does not upload or store the values you enter.