Cost of Debt Calculator
Cost of Debt Calculator
Component | Description |
---|---|
Total Interest Expense | The total interest expense on debt for the period. |
Total Debt | The total amount of debt outstanding. |
Cost of Debt | The effective rate that a company pays on its borrowed funds. |
Formula | Cost of Debt = Total Interest Expense / Total Debt |
Purpose | Used to measure the cost of borrowing and assess the financial health of a company. |