Work out weighted average cost of capital instantly with clear inputs, formula shown and shareable results.
WACC blends the cost of each source of capital by its market-value weight, with debt taken after tax because interest is deductible. It is the hurdle rate for projects of average risk and the discount rate in an enterprise valuation.
WACC
WACC = wₑkₑ + w_d k_d(1 - t)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Market weights, since WACC is about the return investors require on today's values.
Only up to a point. Beyond it, both debt and equity costs rise with financial risk and WACC turns upward.