WACC Calculator Tool

WACC Calculator

WACC Calculator

Parameter Description Example Value
Cost of Equity The return required by equity investors. 8%
Cost of Debt The effective rate that a company pays on its borrowed funds. 4%
Market Value of Equity The total market value of the company’s equity (market capitalization). $200,000
Market Value of Debt The total market value of the company’s debt. $100,000
Tax Rate The corporate tax rate. 30%
WACC The weighted average cost of capital (Cost of Equity * (Market Value of Equity / (Market Value of Equity + Market Value of Debt)) + Cost of Debt * (1 – Tax Rate) * (Market Value of Debt / (Market Value of Equity + Market Value of Debt))). 6.2%

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