Cost of Capital Calculator
Calculate WACC, cost of equity, and cost of debt for investment analysis
Capital Structure
Cost of Capital Results
Enter your capital structure details to calculate WACC and cost of capital.
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How to Use the Cost of Capital Calculator
Enter Market Value of Equity
Input the total market capitalization of your company's equity (shares outstanding × stock price).
Enter Market Value of Debt
Specify the total market value of your company's debt obligations including bonds and loans.
Input Cost of Equity
Enter the required rate of return for equity investors, typically calculated using CAPM or dividend growth model.
Input Cost of Debt
Specify the interest rate your company pays on its debt before tax benefits.
Enter Tax Rate
Input your company's corporate tax rate to calculate the after-tax cost of debt.
Review WACC Results
View the weighted average cost of capital and capital structure breakdown for investment decisions.
Cost of Capital Calculation Tips
- ✓Use market values, not book values, for equity and debt
- ✓Update WACC calculations regularly as market conditions change
- ✓Consider using CAPM to calculate cost of equity accurately
- ✓Include all forms of debt: bonds, loans, and credit facilities
- ✓Use marginal tax rate, not average tax rate
- ✓WACC is the minimum return required for new projects
- ✓Lower WACC indicates lower capital costs and higher firm value
- ✓Compare WACC with industry benchmarks
- ✓Adjust for country risk in international investments
- ✓Use WACC as discount rate for NPV calculations