WACC Calculator
Blend a company’s debt and equity costs.
Runs locally in your browser — your numbers never leave this pageTry: Equity=600000, Debt=400000, Cost of equity=10, Cost of debt=5, Tax rate=21 → $600,000, $400,000, 10.00%, 5.00%, 21.00%, 7.58%
How to use
Weighted average cost of capital is the minimum return a project must beat to create value. Debt is cheaper because interest is tax-deductible.
Formula
WACC = E/V·Re + D/V·Rd·(1 − T)
V = E + D.
FAQ
Why subtract tax on debt?
Interest expense reduces taxable income, so the after-tax cost of debt is lower.
Where do I get the cost of equity?
Commonly the CAPM model, or a required return estimate.
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