» WACC (Weighted Average Cost of Capital)

Initial Data

Cost of equity (rE)
Total equity (E)
Cost of debt (rD)
Total debt (D)
Corporate tax rate (t)


Weighted Average Cost of Capital (WACC) Calculator:


WACC (Weighted Average Cost of Capital)

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.

\begin{align} WACC &=\frac{E}{D+E}\times r_{E}+\frac{D}{D+E}\times r_{D}\times (1-t)\\ \end{align}