WACC Calculator

Calculate Weighted Average Cost of Capital

WACC Calculator
Company Information
Enter the name of the company for which you're calculating WACC
Select the industry sector to help with risk assessment
Equity Information

Enter the equity-related financial data for your company

Total market value of all outstanding shares (current stock price × number of shares)
Required return on equity (typically 8-15% for most companies)
Stock's sensitivity to market movements (1.0 = market average, >1.0 = more volatile)
Government bond yield (typically 2-5% depending on country and maturity)
Debt Information

Enter the debt-related financial data for your company

Total market value of all outstanding debt (bonds, loans, etc.)
Average interest rate on all debt (before tax benefits)
Corporate income tax rate (used to calculate after-tax cost of debt)
Average time until debt obligations mature
Preferred Stock Information Optional

Enter preferred stock data if your company has preferred shares outstanding

Total market value of all outstanding preferred shares (leave 0 if none)
Required return on preferred stock (dividend yield)
Additional Market Parameters

Enter market parameters for more accurate calculations

Expected market return minus risk-free rate (typically 5-8%)
Expected annual inflation rate (typically 2-4%)
Click to calculate the weighted average cost of capital
Quick Examples

Try these pre-filled examples to see how WACC calculations work:

Technology Company

High-growth tech startup with moderate debt

Manufacturing Company

Established manufacturer with balanced capital structure

Utility Company

Stable utility with high debt and low risk

Retail Company

Consumer retail with moderate risk profile

Healthcare Company

Healthcare provider with stable cash flows

Financial Services

Bank or financial institution with high leverage

About WACC Calculator & Analysis
WACC Calculator

This comprehensive WACC calculator helps you calculate weighted average cost of capital, capital structure analysis, and investment evaluation, making it essential for individuals and financial professionals in understanding corporate finance and planning investment strategies.

Calculation Features:
  • WACC Calculations: Calculate weighted average cost of capital
  • Capital Structure Analysis: Analyze capital structure and weights
  • Cost Analysis: Analyze cost of capital components
  • Visual Analysis: Charts and graphs for better understanding
  • Investment Evaluation: Evaluate investment opportunities
  • Risk Assessment: Assess corporate risks and implications
Key Benefits:
  • Investment Planning: Essential for investment planning strategies
  • Financial Planning: Used in comprehensive financial planning
  • Corporate Analysis: Applied in corporate analysis and planning
  • Decision Making: Critical for investment decisions

WACC Calculator

What is WACC Calculator?

This comprehensive WACC calculator helps you calculate weighted average cost of capital, capital structure analysis, and investment evaluation, making it essential for individuals and financial professionals in understanding corporate finance and planning investment strategies.

This tool is designed to handle complex WACC calculations with precision and clarity, providing both numerical results and educational insights for understanding capital structure and investment evaluation.

How is it Calculated?

The WACC Calculator uses advanced financial algorithms and corporate finance principles to provide accurate results:

  • WACC Formulas: Based on weighted average of cost of equity and cost of debt
  • Capital Structure: Analyze equity and debt proportions
  • Cost Analysis: Calculate cost of each capital component
  • Risk Assessment: Assess corporate risks and implications
When is it Useful?

This calculator is essential for:

  • Investment Planning: Planning investment strategies
  • Corporate Analysis: Understanding corporate finance implications
  • Financial Planning: Managing comprehensive financial planning
  • Education: Understanding WACC concepts and calculations
Why is it Important?

Understanding WACC is crucial for:

  • Financial Planning: Ensure proper investment planning strategies
  • Risk Management: Plan for corporate finance implications
  • Goal Achievement: Track progress toward financial security goals
  • Financial Stability: Build financial stability through proper planning
How to Use the Tool?

Using the WACC Calculator is very simple:

  1. Enter Company Information: Input company name and industry
  2. Set Equity Parameters: Choose market value and cost of equity
  3. Add Debt Information: Include market value and cost of debt
  4. Click Calculate: View detailed WACC analysis and charts
Calculation Example

Let's do a sample calculation:

Example: WACC Calculation
Company Details:
Market Value of Equity: $1,000,000
Market Value of Debt: $500,000
Cost of Equity: 12%
Cost of Debt: 6%
Formula Used:
WACC = (E/V × Re) + (D/V × Rd × (1-T))
Where: E = Equity, D = Debt, V = Total Value
Step-by-Step Calculation:
Total Value: $1,500,000
Equity Weight: 66.67%
Debt Weight: 33.33%
WACC: 9.33%
Advanced Features
  • Multiple Capital Components: Support for equity, debt, and preferred stock
  • Risk Analysis: Strategies to assess corporate risks
  • Interactive Charts: Visualize WACC and capital structure relationships
  • Investment Planning: Generate detailed investment analysis schedules
Use Cases & Applications
  • Corporate Finance: Corporate investment analysis
  • Investment Planning: Investment planning and analysis
  • Financial Planning: Capital structure cost analysis
  • Educational: Learning about WACC concepts
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WACC Tips
  • Use Market Values: Use market values for calculations, not book values
  • Consider Tax Effects: Account for tax benefits of debt
  • Review Regularly: Update WACC calculations as market conditions change
  • Compare Industry: Compare with industry averages
  • Consider Risk: Factor in company-specific risks
  • Multiple Scenarios: Run different scenarios for sensitivity analysis
  • Long-term View: Focus on long-term capital structure rather than short-term fluctuations