WACC Calculator - Stefano Campita

How WACC works WACC is the blended required return for a company's capital providers. It weights the cost of equity and after-tax cost of debt by their share of the financing mix.

See the formula

WACC = [E / (D + E) x Re] + [D / (D + E) x Rd x (1 - Tax Rate)]

Cost of equity uses CAPM: Re = Risk-Free Rate + Beta x Equity Risk Premium + Additional Premiums.

Inputs

Capital Structure

Market Value of Equity in millions $

Total Debt $M

Cash $M, optional

Cost of Equity - CAPM

Risk-Free Rate %

Beta

Equity Risk Premium %

Other Premiums %

Cost of Debt

Pre-Tax Cost of Debt %

Tax Rate %

Fill in the inputs and click
Calculate WACC

Capital Structure

0.0%WACC

Weighted Contribution

Sensitivity Analysis - WACC

Beta (rows) vs Equity Risk Premium (columns)

Model Assumptions

This tool is for educational and illustrative purposes only. WACC is assumption-sensitive and should not be treated as financial advice.

How to Use This Calculator

1. Use Market Values

For equity, use market capitalization. For debt, use market value when available, or book value as a practical proxy.

2. Estimate Required Returns

Use CAPM for cost of equity and the current yield or marginal borrowing cost for pre-tax cost of debt.

3. Stress-Test the Output

Small changes in beta and equity risk premium can materially change WACC, especially for equity-heavy companies.