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Capital cost analysis for investment decisions

WACC Calculator for Project Valuation

Estimate your weighted average cost of capital, understand the cost of debt and equity, analyze your capital structure, and use the result as a practical discount rate for NPV and IRR decisions.

Company Data and Capital Structure

Use market values for debt and equity when available. If only book values are available, use them as an initial estimate and document that assumption in the report.
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Cost of Equity

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Main Result

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WACC
Calculate to view the analysis
A concise interpretation of your cost of capital will appear here, including how it can be used as a discount rate in project valuation.

Capital Cost Metrics

After-Tax Cost of Debt
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Cost of Equity
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Debt Weight
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Equity Weight
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Debt-to-Capital Ratio
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Return Spread Above WACC
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Recommendations and Alerts

  • Click Calculate WACC to view alerts.
  • The improvement plan will appear after calculation.

Capital Structure and Sensitivity Analysis

ComponentValueCostWeightWACC Contribution
ScenarioPre-Tax Cost of DebtCost of EquityResulting WACCQuick Reading

What is the WACC Calculator?

The WACC Calculator helps companies and financial analysts estimate the blended cost of financing from debt, equity, and other capital sources. This rate is often used as a practical discount rate in NPV models and as a hurdle rate when comparing project IRR.

How to use it

  1. Enter the market value of debt, equity, and any preferred or other capital.
  2. Enter the pre-tax cost of debt and the corporate tax rate.
  3. Enter the cost of equity directly or calculate it using CAPM.
  4. Click Calculate WACC and review alerts, scenarios, and sensitivity results.
  5. Use WACC as a discount rate in NPV and compare project IRR against it.

Practical example

If a company has 400,000 in debt at an 8% pre-tax cost, 600,000 in equity at a 14% cost, and a 20% tax rate, WACC estimates the blended financing cost that a new project should exceed to create value.

When it matters

WACC is especially useful when evaluating new investments, acquisitions, large asset purchases, factory expansions, or any financial model that needs a discount rate reflecting capital cost and company risk.

Related tools

Use WACC together with investment analysis tools for a clearer decision:

Professional disclaimer

The results are educational and analytical, based on user-entered assumptions. WACC can be affected by market risk, actual financing terms, credit quality, capital structure, taxes, and country risk. Do not use this output alone for major financing or valuation decisions without professional review.