What is the WACC Calculator?
The wacc calculator is a free online tool that helps you work out wacc quickly and accurately. It uses the standard formula WACC = E/V x Re + D/V x Rd x (1 - tax) and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter the value of equity and debt.
- Enter the cost of each.
- Enter the tax rate.
- See the WACC.
Formula used
WACC = E/V x Re + D/V x Rd x (1 - tax)Explanation of each input
- Market value of equity โ the market value of equity used in the calculation.
- Market value of debt โ the market value of debt used in the calculation.
- Cost of equity (%) โ the cost of equity used in the calculation.
- Cost of debt (%) โ the cost of debt used in the calculation.
- Tax rate (%) โ the tax rate used in the calculation.
Understanding your result
- WACC โ the calculated wacc in %.
Step-by-step calculation
For the example values E 60L, D 40L, Re 14%, Rd 9%, tax 25%:
- Apply the formula:
WACC = E/V x Re + D/V x Rd x (1 - tax) - Substitute the values: weighted
- Result: WACC about 11.1%
Worked example
| Inputs | E 60L, D 40L, Re 14%, Rd 9%, tax 25% |
|---|---|
| Working | weighted |
| Result | WACC about 11.1% |
Benefits and practical uses
This calculator saves you time and reduces errors when you need wacc. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- Market values; constant capital structure.
Frequently asked questions
What is WACC used for?
As the discount rate for valuing a company's cash flows.
Disclaimer: This calculator provides estimates for general information only and is not financial advice. Returns are illustrative and not guaranteed; consult a qualified financial adviser before making decisions.