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WACC Calculator
Weighted average cost of capital from equity, debt, optional preferred stock, and tax shield.
Capital structure
CSV: parameter,value — equityValue, debtValue, preferredValue, costOfEquity, costOfDebt, costOfPreferred, taxRate. After Solve, also Export results CSV.
Cost of capital
WACC is the blended required return on a firm’s capital structure — used as a discount rate for enterprise NPV and project hurdle rates (with care).
Formula
WACC = wₑ Re + w_d Rd(1 − Tc) + w_p Rp
Weights are market-value shares of equity, debt, and preferred. Debt interest is tax-deductible, so use after-tax Rd.
Inputs
Re from CAPM or dividend models; Rd from yield on debt; Tc corporate tax rate; values preferably market, not book.
E=$600k at 12%, D=$400k at 8% before tax, Tc=30% → WACC = 9.44%.
Frequently Asked Questions
Prefer market values. Book equity can badly misstate current investor required returns.