Weighted Average Cost of Capital Calculator
Combine entered equity/debt values and costs, with an optional explicit interest tax-shield rate.
YOUR CALCULATION
Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Weight equity and debt costs by the entered capital values. Show the before-shield weighted cost regardless of tax input, and after-shield WACC only when the rate is supplied.
Before shield=(E×ke+D×kd)/(E+D); after shield=(E×ke+D×kd(1−tax shield))/(E+D)
Worked example
Equity/debt weights 60/40, equity cost 10% and debt cost 5% give 8% before shield. An explicit 25% shield rate gives 7.5%.
Assumptions and input details
Capital values must be nonnegative with positive total. Market/book value basis is the user choice and should be consistent. Optional shield rate assumes that fraction of interest cost is actually offset; deductibility and ability to use a tax benefit are not established. Blank is unknown, not zero. No preferred stock, changing leverage, issuance fees or national tax rules. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
References: OpenStax: WACC
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
Translate entered unlevered business cash flows and optional terminal growth into enterprise and residual equity values.
Compare operating earnings with interest expense and gross/net interest-bearing debt.
Add balances in different currencies, including debts. Convert the total and compare a table and currency chart.
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