Weighted Average Cost of Capital (WACC) Calculator

WACC Calculator: Calculate Your Weighted Average Cost of Capital. Calculate your company's Weighted Average Cost of Capital (WACC) with our easy-to-use calculator. Get an accurate estimate of your company's financing costs quickly and accurately!

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  • ReleasedJun 24, 2022
  • UpdatedOct 03, 2024
  • File TypeMicrosoft Excel
  • Demo Video No
  • File Size0.0
  • File SKU38

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Kumar S Devendra
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Weighted Average Cost of Capital (WACC) Calculator Description

This WACC calculator helps you calculate WACC based on capital structure, cost of equity, cost of debt, and tax rate.

Weighted Average Cost of Capital (WACC) represents a company’s blended cost of capital across all sources, including common shares, preferred shares, and debt.  The cost of each type of capital is weighted by its percentage of total capital and they are added together. The purpose of WACC is to determine the cost of each part of the company’s capital structure based on the proportion of equity, debt, and preferred stock it has.

The WACC formula is: WACC  =  (E/V x Re)  +  ((D/V x Rd)  x  (1 – T))

E = market value of the firm’s equity (market cap)
D = market value of the firm’s debt
V = total value of capital (equity plus debt)
E/V = percentage of capital that is equity
D/V = percentage of capital that is debt
Re = cost of equity (required rate of return)
Rd = cost of debt (yield to maturity on existing debt)
T = tax rate

Credits to :  Corporate Finance Institute

 

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