Calculator · Cost of capital

WACC calculator

Step through the risk-free rate, tax rate, beta, equity and country risk premiums, cost of debt and capital structure to a weighted average cost of capital, and compare it with the industry cost of capital.

How the WACC is built

The weighted average cost of capital combines the cost of equity and the after-tax cost of debt at target market-value weights. Each step uses the same data update and currency, so the result is internally consistent, and a sensitivity table shows how the WACC moves with the risk-free rate, the equity risk premium, country risk, beta and leverage.

The result is compared with Damodaran's industry cost of capital for the selected region, weighted by segment when the business operates in more than one industry. The input register lists every figure with its source, ready for the working papers (IVS 104 para 50.01).

Related: Cost of equity calculator · Cost of debt calculator · Equity bridge calculator · Model notes