Business decision tool
Weighted Average Cost of Capital Calculator
Combine equity and after-tax debt costs into a weighted company discount rate.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Understand WACC
One idea, three depths
Choose how deeply to explain WACC
WACC: Combine equity and after-tax debt costs into a weighted company discount rate.
Age 5Explain it to a 5-year-oldStart with a picture
Imagine using WACC to answer this question: combine equity and after-tax debt costs into a weighted company discount rate? Enter Market value of equity, Market value of debt, Required return on equity, and 2 other inputs; the calculator shows Weighted average cost of capital. Try changing one number and watch what happens to Weighted average cost of capital. The answer tells you Weighted average cost of capital.
Age 15Explain it to a 15-year-oldConnect it to the formula
WACC is appropriate only when the entered capital structure and risk resemble the project or company being valued. Book values may differ materially from market values. The rule is WACC = E/(D+E) × Re + D/(D+E) × Rd × (1 − tax rate). Its input values are Market value of equity, Market value of debt, Required return on equity (%), Pre-tax debt cost (%), Corporate tax rate (%), and the main result is Weighted average cost of capital. Try changing one number and watch what happens to Weighted average cost of capital.
CollegeExplain it at college levelState the model precisely
This tool models one operating decision from explicitly supplied company assumptions. The implemented relation is WACC = E/(D+E) × Re + D/(D+E) × Rd × (1 − tax rate), evaluated from Market value of equity, Market value of debt, Required return on equity (%), Pre-tax debt cost (%), Corporate tax rate (%) to produce Weighted average cost of capital. WACC is appropriate only when the entered capital structure and risk resemble the project or company being valued. Book values may differ materially from market values. The model omits unentered taxes, cash timing, legal constraints and market uncertainty. Compare the output with company records and a downside scenario before committing resources.
The decision this tool supports
Combine equity and after-tax debt costs into a weighted company discount rate.
Why the business model works
WACC is appropriate only when the entered capital structure and risk resemble the project or company being valued. Book values may differ materially from market values.
Inputs and operating assumptions
This model uses Market value of equity (at least 0), Market value of debt (at least 0), Required return on equity (at least 0), Pre-tax debt cost (at least 0), Corporate tax rate (at least 0). Keep currencies, accounting treatment and time periods consistent with one another.
The formula
WACC = E/(D+E) × Re + D/(D+E) × Rd × (1 − tax rate)
What the calculator produces
The primary output is Weighted average cost of capital; it also exposes Equity weight, Debt weight, After-tax debt cost. Change one assumption at a time so the comparison remains explainable.
Before using the result in a decision
This compact model cannot capture every tax, accounting, legal, market or operational condition. Compare the output with current company records, cash timing and the downside scenario before committing resources.
Supporting sourcesAcademic referencesPrimary standards, textbooks and complete citations
Standards, reading and academic references
Use the calculator as the worked interaction, then consult the primary standards and academic textbooks listed below. MW SysArc links to the original sources; the explanation on this page is original and does not reproduce them.
Introduction to Business 2e
Read the free OpenStax business textbookCite this book
- APA 7
- Gitman, L. J., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B., & Hyatt, J. C. (2026). Introduction to business 2e. OpenStax. https://openstax.org/books/introduction-business-2e/pages/1-introduction
- MLA 9
- Gitman, Lawrence J., et al. Introduction to Business 2e. OpenStax, 2026, https://openstax.org/books/introduction-business-2e/pages/1-introduction.
- Chicago author-date
- Gitman, Lawrence J., Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, and James C. Hyatt. 2026. Introduction to Business 2e. Houston, TX: OpenStax. https://openstax.org/books/introduction-business-2e/pages/1-introduction.
OpenStax entries are free to read online. Follow the licence shown on each linked source before redistributing or adapting its content.
Reuse the page responsiblyCite this pageAPA, MLA, Chicago, Harvard, BibTeX and RIS
These formats cite this calculator page itself. They are separate from the academic references above, which support the mathematical method and terminology.
APA 7
MW SysArc. (2026, July 21). Weighted Average Cost of Capital Calculator. MW SysArc Tools. https://business.mwsysarc.com/weighted-average-cost-of-capital
MLA 9
MW SysArc. “Weighted Average Cost of Capital Calculator.” MW SysArc Tools, 21 July 2026, https://business.mwsysarc.com/weighted-average-cost-of-capital. Accessed 30 Aug. 2026.
Chicago 17
MW SysArc. “Weighted Average Cost of Capital Calculator.” MW SysArc Tools. Published July 21, 2026. Accessed August 30, 2026. https://business.mwsysarc.com/weighted-average-cost-of-capital.
Harvard
MW SysArc (2026) ‘Weighted Average Cost of Capital Calculator’, MW SysArc Tools. Published 21 July 2026. Available at: https://business.mwsysarc.com/weighted-average-cost-of-capital (Accessed: 30 August 2026).
BibTeX and RIS records
BibTeX
@misc{mwsysarc_weighted_average_cost_capital_2026,
author = {{MW SysArc}},
title = {Weighted Average Cost of Capital Calculator},
howpublished = {MW SysArc Tools},
year = {2026},
url = {https://business.mwsysarc.com/weighted-average-cost-of-capital},
note = {Published July 21, 2026; accessed August 30, 2026}
}RIS
TY - ELEC
AU - MW SysArc
TI - Weighted Average Cost of Capital Calculator
T2 - MW SysArc Tools
PY - 2026
DA - 2026-07-21
Y2 - 2026-08-30
UR - https://business.mwsysarc.com/weighted-average-cost-of-capital
N1 - Published July 21, 2026
ER -Clear answers
Frequently asked questions
What does the WACC do?
Combine equity and after-tax debt costs into a weighted company discount rate.
How does the WACC work?
The calculator applies WACC = E/(D+E) × Re + D/(D+E) × Rd × (1 − tax rate). WACC is appropriate only when the entered capital structure and risk resemble the project or company being valued. Book values may differ materially from market values.
What can I learn from the WACC?
It connects company inputs to a transparent business result. Change one value at a time to compare operating scenarios.
Does MW SysArc receive or store what I enter?
No. The calculation runs locally in your browser. MW SysArc does not receive or store your calculation inputs.
How should I use the result?
Use the result as a practical reference. Review the inputs, assumptions and stated limitations before relying on it.
Last reviewed . Calculations tested .