WACC Calculator (Weighted Average Cost of Capital)
Result
WACC 12.41%
Equity Weight 60%
Debt Weight 40%
After-Tax Cost of Debt 8.52%
WACC Calculator (Weighted Average Cost of Capital) is a financial calculator that helps you calculate a company's Weighted Average Cost of Capital (WACC) from its equity and debt costs. The formula used is: WACC = (E/V) × Ke + (D/V) × Kd × (1 − Tax); V = E + D. Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
Formula
WACC = (E/V) × Ke + (D/V) × Kd × (1 − Tax); V = E + D
- WACC Calculator (Weighted Average Cost of Capital) gives you a fast estimate using your inputs and updates instantly when you change any value.
- Formula: WACC = (E/V) × Ke + (D/V) × Kd × (1 − Tax); V = E + D
- Input definitions: • Total Equity: the numeric total equity used in the calculation • Total Debt: the numeric total debt used in the calculation • Cost of Equity: the numeric cost of equity used in the calculation • Cost of Debt (pre-tax): the numeric cost of debt (pre-tax) used in the calculation • Corporate Tax Rate: the numeric corporate tax rate used in the calculation
- Manual method: write down each input, apply the formula step by step, then compare your manual result with the calculator output.
- Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
- Assumes constant rates, no additional fees, and no tax unless stated. Actual outcomes vary with market conditions.
- Compare against your financial goals or market benchmarks. A higher figure may mean greater cost or greater return depending on context.
- Practical tip: test a low, medium, and high scenario to understand sensitivity before making decisions.
Example Calculation
Inputs
- Total Equity: 6000000 PKR
- Total Debt: 4000000 PKR
- Cost of Equity: 15 %
- Cost of Debt (pre-tax): 12 %
- Corporate Tax Rate: 29 %
Suppose you enter: Total Equity = 6000000, Total Debt = 4000000, Cost of Equity = 15, Cost of Debt (pre-tax) = 12, Corporate Tax Rate = 29. The calculator applies the formula (WACC = (E/V) × Ke + (D/V) × Kd × (1 − Tax); V = E + D) and shows all output values below. Change any input field to immediately see how the result changes.
Frequently asked questions
What is the WACC Calculator (Weighted Average Cost of Capital)?
The WACC Calculator (Weighted Average Cost of Capital) is a financial calculator that helps you calculate a company's Weighted Average Cost of Capital (WACC) from its equity and debt costs. Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
When should I use this calculator?
Use this calculator whenever you need a quick, accurate result for a company's Weighted Average Cost of Capital (WACC) from its equity and debt costs without working through the arithmetic manually.
What units should I enter?
Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
How accurate are the results?
Assumes constant rates, no additional fees, and no tax unless stated. Actual outcomes vary with market conditions.
How do I interpret the result?
Compare against your financial goals or market benchmarks. A higher figure may mean greater cost or greater return depending on context.
How can I verify the calculation manually?
Use the displayed formula and work through the numbers step by step. If your manual result differs slightly, check rounding and unit conversions first.
Can I use this for planning and budgeting?
Yes. Run best-case, expected, and worst-case inputs to compare outcomes and make safer planning decisions.
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