Weighted Average Cost of Capital Calculator – A Financial Ratio Calculation

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Weighted Average Cost of Capital (WACC) Formula

WACC = ( ( (E / V) * Re ) + ( (D / V) * Rd ) * (1 - Tc) )

Where,

Re = total cost of equity

Rd = total cost of debt

E = market value total equity

D = market value of total debt

V = total market value of the company combined debt and equity or E + D

E/V = equity portion of total financing

D/V = debt portion of total financing

Tc = income tax rate

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