Code tool

WACC Calculator

Estimate weighted average cost of capital from manually entered common equity, debt, preferred equity and tax assumptions.

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Use market capital amounts in one currency and scale; enter 0 for an absent capital class and its cost. Total capital must be positive. The company-level cost applies to company cash flows with matching risk, currency and rate period. Debt interest receives the assumed corporate tax shield; common and preferred equity do not. Rates are user assumptions, not advice.

All inputs are entered manually and stay in this browser. No market data is fetched.

Conceptual references: Damodaran · DCF · Damodaran · WACC / CAPM

A QUICK WALKTHROUGH

How to use this tool

  1. Estimate weighted average cost of capital from manually entered common equity, debt, preferred equity and tax assumptions.
  2. Use market capital amounts in one currency and scale; enter 0 for an absent capital class and its cost. Total capital must be positive. The company-level cost applies to company cash flows with matching risk, currency and rate period. Debt interest receives the assumed corporate tax shield; common and preferred equity do not. Rates are user assumptions, not advice.
  3. Calculate

Formula

V = E + D + PS; wE = E/V; wD = D/V; wPS = PS/V; WACC (%) = wE × Ke + wD × Kd × (1 − T/100) + wPS × Kp.

Assumptions and limits

Use market capital amounts in one currency and scale; enter 0 for an absent capital class and its cost. Total capital must be positive. The company-level cost applies to company cash flows with matching risk, currency and rate period. Debt interest receives the assumed corporate tax shield; common and preferred equity do not. Rates are user assumptions, not advice.

Local processing

All inputs are entered manually and stay in this browser. No market data is fetched.

GOOD TO KNOW

Common questions

Does this predict actual returns?

No. This is a model estimate using your own assumptions, not a forecast or investment recommendation.