Our WACC Calculator will accurately estimate your company’s Weighted Average Cost of Capital (WACC). This tool considers both the Cost of Equity and the After-Tax Cost of Debt to provide you with a precise and reliable calculation.
WACC Calculator online (Weighted Average Cost of Capital) – Complete Guide
Are you a businessman and want to know how much it really costs your company to raise capital (money)? That’s exactly what WACC – Weighted Average Cost of Capital – tells you.
👉 Our WACC Calculator tool instantly calculates your company’s average cost of capital. It shows you how much return you need to give investors and lenders by combining equity and debt.
WACC is most useful in investment decision-making, NPV calculation, and project evaluation.
WACC Meaning – What is WACC?
The full form of WACC is Weighted Average Cost of Capital.
📌 In simple words:
👉 WACC = the average cost a company has to pay to Debt Holders (lenders) and Equity Holders (shareholders).
It includes equity, preference shares, and debt.
WACC is always calculated on an after-tax basis.
WACC Formula
WACC का formula :
📈 WACC (Weighted Average Cost of Capital) Formula
$$\text{WACC} = \left(\frac{E}{V} \times R_e\right) + \left(\frac{D}{V} \times R_d \times (1-T_c)\right)$$
🔹 Where:
- E: Market value of equity
- D: Market value of debt
- V: Total firm value (E + D)
- Re: Cost of equity
- Rd: Cost of debt
- Tc: Corporate tax rate
WACC Calculator Table Format:
| Symbol | Meaning | Example Value |
|---|---|---|
| E | Equity Value | $14,000 |
| D | Debt Value | $6,000 |
| V | Total Value (E+D) | $20,000 |
| Re | Cost of Equity | 12.5% |
| Rd | Cost of Debt | 7% |
| Tc | Tax Rate | 20% |
Example – Manual WACC Calculation
मान लीजिए company की details ये हैं:
- Debt (D) = $6,000
- Equity (E) = $14,000
- Cost of Debt (Rd) = 7%
- Cost of Equity (Re) = 12.5%
- Tax Rate (Tc) = 20%
👉 Formula में values put करते हैं:
📊 WACC Calculation Example
Formula में values put करते हैं:
$$\text{WACC} = \left(\frac{14,000}{20,000} \times 0.125\right) + \left(\frac{6,000}{20,000} \times 0.07 \times (1-0.2)\right)$$ $$\text{WACC} = 0.0875 + 0.0168 = 0.1043 = 10.43\%$$
📌 मतलब – इस firm का WACC = 10.43% है।
WACC Calculator
Result: —%
FAQs – WACC Calculator
Why is WACC calculated?
To understand the company’s financing cost and investment decisions.
What does a high WACC mean?
ChatGPT said:
It means capital is expensive, and investors expect a higher return.
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