Free · Equity investment calculators 📈

Weighted Equity & Debt Capital Cost Calculator

Weight equity cost and assumed after-tax debt cost by their capital amounts.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Equity of 600 at a 10% cost and debt of 400 at a 5% cost, with an assumed tax-shield rate of 25%, give WACC of 7.5%.

WACC = E ÷ (E + D) × equity cost + D ÷ (E + D) × debt cost × (1 − tax rate)

Worked example

Enter these known values and leave the other values blank.

Equity
600 USD
Debt
400 USD
Cost of equity
10 %
Cost of debt
5 %
Assumed debt tax-shield rate
25 %
WACC
7.5 %

Assumptions and limitations

  • Market or target capital weights are commonly used for valuation; supply amounts consistent with your chosen method. The debt term assumes the entered tax shield is usable. Preferred capital, financing fees and restrictions on interest deductions are outside this two-source model.
  • Use consistent units, dates and financial definitions. The calculated result follows the stated assumptions and the amounts entered.

Common questions

Which capital values and tax rate should be used?

Market or target capital weights are commonly used for valuation; supply amounts consistent with your chosen method. The debt term assumes the entered tax shield is usable. Preferred capital, financing fees and restrictions on interest deductions are outside this two-source model.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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