WACC Calculator
Calculate Weighted Average Cost of Capital
Understanding WACC
What is WACC?
WACC (Weighted Average Cost of Capital) represents the average cost a company pays to finance its assets, considering both equity and debt funding sources. It's a crucial metric for evaluating investment opportunities and making financial decisions.
How to Use This Calculator
- Enter your company's total equity value
- Input the cost of equity percentage
- Add your total debt amount
- Specify the cost of debt percentage
- Enter your corporate tax rate
Why WACC Matters
WACC is essential for:
- Evaluating new investment opportunities
- Making capital budgeting decisions
- Determining optimal capital structure
- Measuring company performance