The WACC Calculator is a free tool that helps you calculate wacc using the formula WACC = E/V x Re + D/V x Rd x (1 - tax). Enter your values above and press Calculate to get wacc instantly, with a full step-by-step breakdown.
What is the WACC Calculator?
The wacc calculator is a free online tool that helps you calculate wacc quickly and accurately. It applies the standard formula WACC = E/V x Re + D/V x Rd x (1 - tax) to the values you enter and, when you press Calculate, displays the result together with a clear, step-by-step explanation of how the answer was reached.
How to use the WACC Calculator
- Enter the value of equity and debt.
- Enter the cost of each.
- Enter the tax rate.
- See the WACC.
Formula used
The wacc calculator is based on this formula:
WACC = E/V x Re + D/V x Rd x (1 - tax)Each term in the formula corresponds to one of the inputs explained below. The calculator performs the arithmetic for you and shows every step so you can check the working by hand if you wish.
Worked example
Suppose you enter E 60L, D 40L, Re 14%, Rd 9%, tax 25%. The calculator works as follows:
| Inputs | E 60L, D 40L, Re 14%, Rd 9%, tax 25% |
|---|---|
| Working | weighted |
| Result | WACC about 11.1% |
Step-by-step calculation
- Apply the formula:
WACC = E/V x Re + D/V x Rd x (1 - tax) - Substitute your values: weighted
- Read the result: WACC about 11.1%
Inputs explained
- Market value of equity — the market value of equity used in the calculation.
- Market value of debt — the market value of debt used in the calculation.
- Cost of equity (%) — the cost of equity used in the calculation.
- Cost of debt (%) — the cost of debt used in the calculation.
- Tax rate (%) — the tax rate used in the calculation.
Understanding your result
- WACC — the calculated wacc in %.
Benefits and practical uses
The wacc calculator saves time and removes the risk of manual errors when you need to calculate wacc. It is useful for students, professionals and anyone who wants a fast, dependable answer. Results update the moment you press Calculate, work on any device, and can be copied or shared in a single click — and because the maths runs in your browser, your figures stay completely private.
Tips for an accurate result
- Keep all related inputs in the same units.
- Use the worked example above to confirm you are entering values in the right places.
- Review the assumptions below so the result fits your situation.
- Press Reset to clear everything and try a different scenario.
Common mistakes to avoid
- Entering values in the wrong unit (mismatched units give wrong answers).
- Leaving a required field empty — the calculator will ask you to fill it in.
- Confusing the annual rate with a monthly rate, or tenure in years with months.
- Treating the estimate as a guaranteed return — markets and rates vary.
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.
How do I use the WACC Calculator?
Enter your values in the fields, then press the Calculate button to see the result. Use Reset to clear the form and start again. Nothing is calculated until you click Calculate.
What formula does the WACC Calculator use?
It uses the standard formula: WACC = E/V x Re + D/V x Rd x (1 - tax). The full step-by-step working is shown with every result so you can verify it.
What information do I need to use the wacc calculator?
You need: market value of equity, market value of debt, cost of equity, cost of debt, tax rate. Sensible example values are pre-filled so you can see how it works.
Is the WACC Calculator free to use?
Yes. Every DigiToolkit calculator is completely free, with no sign-up, no login and no usage limits.
Does the WACC Calculator work on mobile phones?
Yes. The calculator is mobile-first and works on phones, tablets and computers in any modern browser.
Do I need to install an app?
No. The wacc calculator runs directly in your web browser — there is nothing to download or install.
Is my data private when I use this calculator?
Yes. All calculations run inside your browser. The numbers you enter are never uploaded to a server or shared with anyone.
How accurate is the WACC Calculator?
It uses the generally accepted formula for wacc and computes to several decimal places. Results are accurate for the assumptions listed on this page.
Can I copy or share my result?
Yes. After calculating, use the Copy button to copy the result, or Share to copy the page link.
Why is nothing showing until I press Calculate?
By design, the calculator only computes when you press Calculate, so you can finish entering all your values first. Press Reset any time to clear everything.
What units does the WACC Calculator use?
It works with %. Keep your inputs in consistent units for an accurate result.