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WACC Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

WACC

10.920%

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the WACC Calculator

The WACC Calculator works out your wacc in an instant. Enter market value of equity, market value of debt and cost of equity and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the market value of equity.
  2. Enter the market value of debt.
  3. Enter the cost of equity.
  4. Enter the cost of debt.
  5. Enter the tax rate.
  6. Read off your wacc — the calculator updates automatically, with no button to press.

Formula

The WACC Calculator uses the formula:

WACC = Market value of equity ÷ (Market value of equity + Market value of debt) × Cost of Market value of equity + Market value of debt ÷ (Market value of equity + Market value of debt) × Cost of Market value of debt × (1 - Tax rate ÷ 100)

Worked example

For example, with market value of equity of ₹6,000,000, market value of debt of ₹4,000,000, cost of equity of 14% and cost of debt of 9% and the other inputs, the wacc is 10.920%.

Inputs used
Market value of equity ₹6,000,000
Market value of debt ₹4,000,000
Cost of equity 14%
Cost of debt 9%
Tax rate 3%
Results
WACC 10.920%

Results are estimates for educational use, not professional advice.

Frequently asked questions

WACC is the average rate a company pays to finance its assets, weighting the cost of equity and the after-tax cost of debt by their share of total capital.

Interest on debt is usually tax-deductible, so the real cost is the rate times (1 − tax rate). This 'tax shield' lowers the effective cost of debt.

It is the discount rate for valuing a company's future cash flows and a hurdle rate for judging whether new projects create value.

A lower WACC means cheaper financing, which raises the present value of future cash flows and makes more projects worthwhile.

The WACC Calculator uses the formula: WACC = Market value of equity ÷ (Market value of equity + Market value of debt) × Cost of Market value of equity + Market value of debt ÷ (Market value of equity + Market value of debt) × Cost of Market value of debt × (1 - Tax rate ÷ 100). For example, with market value of equity of ₹6,000,000, market value of debt of ₹4,000,000, cost of equity of 14% and cost of debt of 9% and the other inputs, the wacc is 10.920%.

Enter the market value of equity. Enter the market value of debt. Enter the cost of equity. Enter the cost of debt. Enter the tax rate. Read off your wacc — the calculator updates automatically, with no button to press.

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