Weighted Average Cost of Capital
Blend debt and equity financing costs with an entered tax rate.
Your numbers
WACC
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Scenario comparison
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Formula
Use WACC = E×rₑ/(D+E)+D×r_d×(1−τ)/(D+E). E and D are equity and debt market values. rₑ, r_d and τ are equity cost, debt cost and effective tax rate, each as a fraction.
Blend debt and equity financing costs with an entered tax rate.
Worked example
- Equity market value
- 600
- Debt market value
- 400
- Equity cost (%)
- 10
- Debt cost (%)
- 5
- Effective tax rate (%)
- 25
- WACC
- 7.5 %
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: 811c52c72ae4 · Example checked: