WACC Calculator

About this calculator

This calculator finds a company's weighted average cost of capital (WACC): WACC = (E/V)×Re + (D/V)×Rd×(1−Tc), where E and D are the market values of equity and debt, V = E+D, Re is the cost of equity, Rd is the cost of debt, and Tc is the corporate tax rate (debt gets a tax shield since interest is deductible).

Corporate finance professionals, investment analysts, and MBA students use WACC as the discount rate in DCF valuations and as the minimum required return a company's investments must clear to create value. Enter the equity and debt amounts, their respective costs, and the tax rate to get the blended rate.