WACC Calculator
Find your stock
Weighted Average Cost of Capital
0%
Cost of equity
0%
After-tax cost of debt
0%
Invalid or missing inputs
Adjust your inputs to reveal your results.
WACC (Weighted Average Cost of Capital) combines the cost of equity and the after-tax cost of debt, weighted by their share of the company's capital structure. It represents the minimum return the company must earn to keep its investors satisfied.
A lower WACC means cheaper financing. A higher WACC means the company needs to earn more to justify its cost of capital. Most established companies have a WACC between 6% and 12%.
WACC = (E/V × Re) + (D/V × Rd × (1 - Tc))
- E = equity value (what investors own)
- D = debt value (what the company borrowed)
- V = E + D (total financing)
- Re = cost of equity (the return investors expect)
- Rd = cost of debt (interest rate on borrowing)
- Tc = tax rate (debt interest is tax-deductible, which makes borrowing cheaper)
Find your stock
Weighted Average Cost of Capital
0%
Cost of equity
0%
After-tax cost of debt
0%
Invalid or missing inputs
Adjust your inputs to reveal your results.
WACC (Weighted Average Cost of Capital) combines the cost of equity and the after-tax cost of debt, weighted by their share of the company's capital structure. It represents the minimum return the company must earn to keep its investors satisfied.
A lower WACC means cheaper financing. A higher WACC means the company needs to earn more to justify its cost of capital. Most established companies have a WACC between 6% and 12%.
WACC = (E/V × Re) + (D/V × Rd × (1 - Tc))
- E = equity value (what investors own)
- D = debt value (what the company borrowed)
- V = E + D (total financing)
- Re = cost of equity (the return investors expect)
- Rd = cost of debt (interest rate on borrowing)
- Tc = tax rate (debt interest is tax-deductible, which makes borrowing cheaper)