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
Cost of Equity
Main Result
Capital Cost Metrics
Recommendations and Alerts
- Click Calculate WACC to view alerts.
- The improvement plan will appear after calculation.
Capital Structure and Sensitivity Analysis
| Component | Value | Cost | Weight | WACC Contribution |
|---|
| Scenario | Pre-Tax Cost of Debt | Cost of Equity | Resulting WACC | Quick 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
- Enter the market value of debt, equity, and any preferred or other capital.
- Enter the pre-tax cost of debt and the corporate tax rate.
- Enter the cost of equity directly or calculate it using CAPM.
- Click Calculate WACC and review alerts, scenarios, and sensitivity results.
- 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.