WACC Calculator
Calculate weighted average cost of capital from equity cost, debt cost, tax rate, and capital structure weights. The standard discount rate for corporate DCF valuations.
Equity weight
60.0%
Debt weight
40.0%
WACC
7.580%
How to use the wacc calculator
Enter market value of equity (E), debt (D), cost of equity (Re), pre-tax cost of debt (Rd), and corporate tax rate (Tc). The weighted average cost of capital is computed.
Formula & explanation
WACC = (E/V) × Re + (D/V) × Rd × (1 − Tc), where V = E + D. The (1 − Tc) factor reflects the tax-deductibility of interest.
Examples
E = 600, D = 400, Re = 10%, Rd = 5%, Tc = 21% → WACC ≈ 7.58%.
Frequently asked questions
- Book or market values?
- Always use market values — book values understate WACC for profitable firms.
- Where does cost of equity come from?
- Most commonly CAPM: Re = Rf + β × (Rm − Rf). See the CAPM tool.
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