Updated
Using WACC calculator
WACC = equity/(equity + debt) × cost of equity + debt/(equity + debt) × pre-tax debt cost × (1 − tax rate).
Uses market-value weights and a fully usable interest tax shield. Tax deductibility, capital structure, market values and rates are user assumptions, not documented eligibility or investment guidance.
A worked example
Example inputs: market equity value = 600, market debt value = 400, cost of equity (%) = 10, pre-tax cost of debt (%) = 5, assumed marginal tax rate (%) = 20. Weighted average cost of capital (%) = 7.6.
Before you use the result
Uses market-value weights and a fully usable interest tax shield. Tax deductibility, capital structure, market values and rates are user assumptions, not documented eligibility or investment guidance.
Example results for market equity value
These examples use Market debt value: 400; Cost of equity (%): 10; Pre-tax cost of debt (%): 5; Assumed marginal tax rate (%): 20. They are reference calculations, not recommended settings.
| Market equity value | Weighted average cost of capital (%) |
|---|---|
| 300 | 6.57142857143 |
| 600 | 7.6 |
| 1200 | 8.5 |
Cite this page
ToolOctopus. “WACC calculator.” Updated 2026-09-26. https://tooloctopus.com/wacc-calculator.
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