Please enter your values in the Weighted Average Cost of Capital (WACC) Calculator. Example is included below.

Total Equity (E):
Cost of Equity in % (Re):
Total Debt (D):
Cost of Debt in % (Rd):
Corporate Tax Rate in % (Tc):

## How to use the Weighted Average Cost of Capital (WACC) Calculator

Let’s review a simple example in order to demonstrate how to use the WACC Calculator.

Suppose that you’d like to compute the WACC given the following information:

- Total Equity (E) = 20000
- Cost of Equity (Re) = 12%
- Total Debt (D) = 8000
- Cost of Debt (Rd) = 5%
- Corporate Tax Rate (Tc) = 10%

Enter the above values in the WACC calculator, and then click on the **Calculate WACC** button:

You’ll then get a WACC of **9.86%**:

## How to Manually Derive the WACC

You may use the following formula to manually calculate the WACC:

E x Re D x Rd x (1 - Tc) WACC = E + D + E + D

Where:

**E**= Total Equity**Re**= Cost of Equity**D**= Total Debt**Rd**= Cost of Debt**Tc**= Corporate Tax Rate

For example, let’s suppose that your goal is to calculate the WACC, given the following information:

- Total Equity (E) = 20000
- Cost of Equity (Re) = 12%
- Total Debt (D) = 8000
- Cost of Debt (Rd) = 5%
- Corporate Tax Rate (Tc) = 10%

You can then enter the above values in the WACC formula:

E x Re D x Rd x (1 - Tc) 20000 x 0.12 8000 x 0.05 x (1-0.1)

WACC = E + D + E + D = 20000+8000 + 20000+8000

You’ll get a WACC of 0.0986 or **9.86%.**