WACC Calculator

Your details

Market value of the company's equity (market capitalisation for public firms, or shareholder equity for private firms).
USD
The return required by equity investors. Often estimated with CAPM: Re = Rf + Beta x (Rm - Rf).
%
Market value of all interest-bearing debt (bonds, loans, notes payable).
USD
The effective pre-tax interest rate the company pays on its debt. Use the yield-to-maturity for traded bonds or the weighted average interest rate for loans.
%
The marginal corporate income tax rate. In the United States the federal rate is 21%. Interest is tax-deductible, so debt is cheaper after tax.
%
Toggle on if your capital structure includes preferred shares. Preferred dividends are not tax-deductible.
WACCModerate cost of capital
9.82%

Weighted average cost of capital

Equity Weight (E/V)70%
Debt Weight (D/V)30%
Preferred Stock Weight (P/V)0%
After-Tax Cost of Debt4.74%
Equity Contribution8.4%
Debt Contribution1.42%
Preferred Stock Contribution0%
9.82% %
Low<8Moderate8-15High15+

WACC: 9.82%

  • Your WACC is 9.82%, which is moderate, typical for established mid-cap firms.
  • Capital structure is equity-heavy (70.0% equity, 30.0% debt).
  • After-tax cost of debt is 4.74% vs. equity cost of 12.00%. Debt is the cheaper source of capital due to the interest tax shield.
  • Any project or investment must earn a return above this WACC to create value for shareholders.

Next stepUse this WACC as the discount rate in DCF valuations or as a hurdle rate for capital budgeting decisions.

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