WACC Calculator

Weighted Average Cost of Capital — the blended rate a company pays to finance its assets.

Equity Value ($)

Debt Value ($)

Cost of Equity (%)

Cost of Debt (%)

Corporate Tax Rate (%)

WACC8.2714%

Total Capital (E + D)$700,000

Weight of Equity71.43%

Weight of Debt28.57%

Cost of Equity10.00%

After-tax Cost of Debt3.9500%

Equity contribution7.1429%

Debt contribution1.1286%

Formula

WACC = (E/V) × Re + (D/V) × Rd × (1 − T)

Where V = E + D, Re = cost of equity, Rd = cost of debt, T = tax rate.

Debt is tax-deductible, so after-tax cost of debt = Rd × (1 − T).