WACC Calculator

Blend the cost of equity and after-tax cost of debt, weighted by capital structure, to get the minimum return a company must earn.

Market Value of Equity ($) *

Cost of Equity (%) *

Market Value of Debt ($) *

Cost of Debt (%) *

Tax Rate (%) *

Include Preferred Stock

Market Value of Preferred Stock ($)

Cost of Preferred Stock (%)

WACC

Total Firm Value

Equity Weight

Debt Weight

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

Where:

• WACC represents the average rate of return a company must pay to finance its assets
• Used as a discount rate for DCF valuations
• Debt interest is tax-deductible, reducing effective cost
• Lower WACC generally indicates better financial health
• Should be recalculated as capital structure changes

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