Paid calculator
WACC calculator
Find the blended cost of the money financing the business. Enter equity and debt amounts, the cost of each and your tax rate.
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Paid calculator
WACC calculator
Buy this calculator on its own for $9, one time. No membership needed. It runs in your browser and nothing you enter is sent to us or saved. Read how it works and the questions below first.
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How it works
How it works
WACC = equity weight x cost of equity + debt weight x cost of debt x (1 - tax rate). Interest is tax deductible, so debt is counted after tax. The result is the hurdle rate a project should beat. Cost of equity is an estimate, since there is no bill for it.
FAQ
About this calculator
How do I estimate cost of equity?
Owners usually use the return they expect for the risk, often with a premium over lending rates. For a small business it is a judgment call, so try a range.
Should I use book or market values?
Market values are the textbook choice. For a private business, book or an estimated value is common. Note which you used.
How is WACC used?
As the discount rate in NPV work and as a minimum return for new projects.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: npv irr payback calculator, debt to equity ratio calculator. See all free tools. More free tools: Leads needed calculator, Loan-to-value ratio calculator, Auto loan calculator, or see all free tools.
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