Weighted Average Cost of Capital (WACC) Calculator

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:

Weighted Average Cost of Capital (WACC) Calculator

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%..