Finance calculator
WACC Calculator - Weighted Average Cost of Capital
Calculate weighted average cost of capital from equity value, debt value, cost of equity, pre-tax debt cost, and tax rate.
FormulaWACC = E/(D + E) x Re + D/(D + E) x Rd x (1 - tax rate)
Formula
WACC formula
WACC inputs require judgment. Use current market data and professional valuation review for investment, acquisition, or impairment decisions.
WACC = E/(D + E) x Re + D/(D + E) x Rd x (1 - tax rate)
If equity is 70% of capital at 10% cost and debt is 30% at 6% before tax with 25% tax, WACC is 8.35%.
SourcesThis calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
Sources and assumptions
Source notes
This calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
- Effective year
- Current rules
- Last verified
- 2026-06-18
WACC inputs require judgment. Use current market data and professional valuation review for investment, acquisition, or impairment decisions.
Assumptions
- Equity and debt values are entered on the same valuation basis.
- Debt cost is entered before tax and then adjusted by the tax rate.
- The result uses a simplified capital-structure weighting method.
Not included
- Preferred stock, lease adjustments, market-risk model estimation, country risk premiums, floating-rate debt, tax shields beyond the entered rate, and advisory valuation work.
FAQ7 common questions for this calculator.
FAQs
What does WACC measure?+
WACC estimates the blended required return for a company based on its mix of equity and debt financing.
Should I use book value or market value?+
Market value is often preferred for valuation work, but the calculator accepts whichever basis you intentionally enter.
Why is debt adjusted for tax?+
Interest can create a tax shield in many situations, so the simplified WACC formula uses after-tax cost of debt.
How does the WACC Calculator calculate the result?+
For the WACC Calculator, it uses the WACC formula: WACC = E/(D + E) x Re + D/(D + E) x Rd x (1 - tax rate). If equity is 70% of capital at 10% cost and debt is 30% at 6% before tax with 25% tax, WACC is 8.35%.
What information do I need to use the WACC Calculator?+
For the WACC Calculator, enter equity value, debt value, cost of equity, pre-tax debt cost, and tax rate. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.
How accurate is the WACC Calculator?+
WACC Calculator is accurate for the rates, amounts, dates, and rules entered. It uses the WACC formula shown on this page. Real products can differ because of fees, taxes, contract terms, or changing official thresholds.
What should I check before using the WACC Calculator result?+
For the WACC Calculator, check equity value, debt value, cost of equity, pre-tax debt cost, and tax rate, then compare the WACC formula and worked example with the contract or source you will rely on. Fees, tax year, currency, and payment timing can change the final decision.
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How to use the WACC Calculator
Calculate weighted average cost of capital from equity value, debt value, cost of equity, pre-tax debt cost, and tax rate. The page also explains the WACC formula and shows a practical example: If equity is 70% of capital at 10% cost and debt is 30% at 6% before tax with 25% tax, WACC is 8.35%.
- 1
Enter your details
Enter equity value, debt value, cost of equity, pre-tax debt cost, and tax rate, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the WACC formula: WACC = E/(D + E) x Re + D/(D + E) x Rd x (1 - tax rate).
- 3
Compare scenarios
Change one or more inputs to see how they affect the WACC Calculator result before you use the estimate.