Estimate a company’s blended cost of financing — the hurdle rate it must clear to create value. Pick a ticker to auto-fill capital weights, or sliders for cost of equity and debt.
Inputs
Result
WACC iWACC (Weighted Average Cost of Capital)A blended cost of financing across equity and debt, weighted by their share of total capital.WACC = (E/V)·Re + (D/V)·Rd·(1 − t)
7.83%
Around marketAdjust weights and rates
What this means. Typical for a US large-cap; ROIC must comfortably exceed this.
Reference
Every input and output on this page, explained in plain English. Hover the info icons in the calculator above to see the same content inline.
A blended cost of financing across equity and debt, weighted by their share of total capital.
Formula
WACC = (E/V)·Re + (D/V)·Rd·(1 − t)
How to read the result
Low cost of capital5/5
Cheap funding base — easier to clear the hurdle.
Around market3/5
Typical for a US large-cap; ROIC must comfortably exceed this.
High cost of capital1/5
Expensive funding — requires high returns to create value.
Required return for equity holders. Often estimated via CAPM: Re = Rf + β·(Rm − Rf).
Effective interest rate the company pays on debt.
Sensitivity of the stock to overall market moves. Market β = 1.
FAQ
It is the discount rate in DCF models and the hurdle rate ROIC must beat. Anything earned above WACC creates value; anything below destroys it.
Educational tool only. The outputs above are produced by a deterministic formula from the values you enter. They are not a recommendation to buy, hold, or sell any security and are not investment advice. Always do your own research and consider consulting a licensed advisor before making investment decisions.
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