Weighted average cost of capital calculator
The hurdle every project must clear.
Interactive: weighted average cost of capitalMedium
- Equity weight
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- Debt weight
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- After-tax cost of debt
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- WACC
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- Tax shield contribution
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- Reading
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Feed the result into the NPV & IRR solver as the hurdle rate and the pair becomes a small corporate-finance desk. Note what the model does not do: raise the cost of equity as you add debt. Do that by hand and the "cheap debt" effect shrinks fast.
The idea behind it
This calculator belongs to Valuation & Cost of Capital, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.
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