WACC Calculator

Calculate weighted average cost of capital from cost of equity, debt, tax rate, and capital structure.

Capital structure inputs

Estimate weighted average cost of capital from equity, debt, tax rate, and required returns.

Market value of equityMarket value of debtCost of equity

Cost of debt

Tax rate

WACC

8.69%

Pre-tax capital cost

After-tax debt cost

4.74%

Enterprise value

$100,000,000

Equity weight

75%

Debt weight

25%

Annual tax shield

$315,000

Debt interest multiplied by tax rate.

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What WACC represents

WACC blends the required return on equity with the after-tax cost of debt. It is commonly used as a discount rate for enterprise valuation and capital budgeting.

Capital structure matters

A company with more debt may benefit from an interest tax shield, but higher leverage can also increase financial risk. Compare multiple structures instead of relying on one static estimate.