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# WACC Calculator

 Cost of equity: % Total equity (\$): This field is required. Cost of debt: %This field is required. Total debt (\$): This field is required. Corporate tax rate: %This field is required.
 Please make sure the form is complete and valid.

The online WACC Calculator is used to calculate the weighted average cost of capital (WACC).

## WACC Definition

In finance, The weighted average cost of capital, or WACC, is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is the minimum acceptable return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere.

## Formula

The following is the WACC calculation formula:

WACC = E/V × Re + D/V × Rd × (1 - Tc)

where:
Re = cost of equity
Rd = cost of debt
E = market value of the firm's equity
D = market value of the firm's debt
V = E + D = firm value
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate