## How the WACC (Weighted Average Cost of Capital) Calculator can help you

WACC (Weighted Average Cost of Capital) Calculator will help you calculate the weighted average cost of capital for your company (which is the rate that a firm is expected to pay on average to all its different investors and creditors to finance its assets.).

## How to use the WACC (Weighted Average Cost of Capital) Calculator

1. Enter the “Total Debt (D)”;

2. Enter the “Total Equity (E)”;

3. Enter the “Cost of Debt (R_{d})”;

4. Enter the “Cost of Equity (R_{e})”;

5. Enter the “Corporate Tax Rate (T_{c})”;

6. Click on the “Calculate WACC” button to get the results for “Weighted Average Cost of Capital (WACC)”.

## WACC (Weighted Average Cost of Capital) Formula

**WACC = (E / V) × R _{e} + (D / V) × R_{d} × (1 − T_{c})**

**R _{e} ** is the cost of equity,

**R _{d} ** is the cost of debt,

**E** is the market value of the company’s equity,

**D ** is the market value of the company’s debt,

**V = E + D** is the total market value of the company’s financing (equity and debt),

**E/V** is the percentage of equity financing,

**D/V** is the percentage of debt financing,

**T _{c}** is the corporate tax rate.