WACC Calculator

WACC blends the cost of equity and cost of debt to find a firm's true hurdle rate.

Cost of Equity (%) Cost of Debt (%) Weight of Equity (%) Weight of Debt (%) Corporate Tax Rate (%)

WACC

The Tax Shield

Because interest payments are tax-deductible in most jurisdictions, debt capital is inherently cheaper. The WACC formula explicitly multiplies the cost of debt by (1 - t) to account for this shield.

Find Cost of Equity via CAPM
Use WACC as Discount Rate in NPV