WACC Calculator
Determine your company's Weighted Average Cost of Capital (WACC). Essential for business valuation, DCF modeling, and investment appraisal.
WACC Calculator
Determine the weighted average cost of capital — the minimum return a company must earn on its assets.
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WEIGHTED AVG COST OF CAPITAL
8.24%
DISCOUNT RATEEQUITY WEIGHT66.7%
DEBT WEIGHT33.3%
TAX SHIELD0.42%
AFTER-TAX DEBT4.74%
Capital Structure
How to Use WACC Calculator in 3 Easy Steps
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Step 1
Enter the total market value of the company's equity.
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Step 2
Enter the total market value of the debt.
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Step 3
Input the cost of equity and the pre-tax cost of debt.
Frequently Asked Questions
It determines the minimum return a company needs to earn to satisfy its creditors and shareholders. It is also used to discount future cash flows in company valuations.
Generally, yes. A lower WACC means cheaper financing, which makes more projects profitable and increases the total value of the firm.
It is the interest rate on government debt, used as the baseline for calculating the cost of equity.