Calculate weighted average cost of capital using debt equity inputs and financing information. Compare funding costs easily for better investment decisions today.
The WACC formula combines equity financing and debt financing costs.
WACC = (E/V × Re) + (D/V × Rd × (1 − Tax Rate))
Where E represents equity value. D represents debt value. V represents total capital value. Re represents cost of equity. Rd represents cost of debt.
Debt value is calculated from the debt to equity ratio. The calculator converts financing proportions into weighted costs.
Enter your company's equity value first.
Add the debt to equity ratio percentage. Then provide financing costs and tax information.
Press the calculate button to view WACC. The result shows capital structure weights and final WACC.
| Input | Value |
|---|---|
| Equity Value | 500000 |
| Debt Equity Ratio | 40% |
| Cost Of Equity | 12% |
| Cost Of Debt | 7% |
| Tax Rate | 25% |
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.