Finance

WACC Calculator

Calculate the Weighted Average Cost of Capital (WACC) to find a firm's average cost of capital from all equity and debt sources.

Inputs

Cost of Equity (%)

0100

Cost of Debt (%)

0100

Weight of Equity (%)

0100

Weight of Debt (%)

0100

Corporate Tax Rate (%)

0100

Calculation Results

Weighted Average Cost of Capital (WACC)

9.00%

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Formula & Mathematical Explanation

\displaystyle \text{WACC} = \left( W_e \times K_e \right) + \left( W_d \times K_d \times (1 - T) \right)

WACC is calculated by multiplying the cost of each capital component (equity and debt) by its proportional weight, then summing them. The cost of debt is multiplied by (1 - Tax Rate) to account for the interest tax shield.