WACC Calculator
The Weighted Average Cost of Capital (WACC) calculator works out the blended rate a business pays to fund itself with a mix of debt and equity, a figure used in company valuations and to judge whether a new project or acquisition is worth funding. You enter your debt total and equity total to set the capital structure, plus your annual interest expense and company tax rate to work out the after-tax cost of debt. For the cost of equity, you enter the risk free rate of return, your company's beta value, and the expected market return rate, which feed into the capital asset pricing model. From these seven figures, the calculator returns your total capital, the debt weight and equity weight as a share of that total, the cost of debt, the cost of equity, and finally the WACC itself, the single percentage representing your blended cost of funding. A lower WACC means cheaper capital and a lower hurdle rate for new projects to clear, while a higher WACC means it should take a stronger return to justify the risk. Use it to compare funding options, set a discount rate for investment appraisal, or benchmark against industry norms. As with any capital structure model, results depend heavily on the inputs you supply, particularly beta and market return assumptions, so treat the output as an indicative estimate rather than financial advice.
