Weighted Average Cost of Capital WACC Calculator

Description

Overview: Weighted Average Cost of Capital Calculator

If you want an efficient and user-friendly WACC Calculator Template, this Excel Template is perfect for you. The template contains all relevant input cells which can help in calculating the firm’s average after-tax cost of capital from all sources, including equity such as investment from owner or investor and loan from bank which is known as debt. This template helps to evaluate the WACC average rate that a company expects to pay to finance its assets.

Our WACC Calculator Excel Tool contains all relevant components and calculations, specifically useful for operational management and financial management. This Excel Template helps you make informed financial decisions based on accurate WACC reporting.

Comprehensive Features

Utilize our WACC Calculator to accurately calculate the Weighted Average Cost of Capital (WACC) using the standard WACC formula. It is essential for assessing a company’s overall cost of capital.

Our WACC Calculator incorporates detailed inputs such as the corporate tax rate, sources of capital, risk premium, risk-free rate, and prevailing interest rates. These factors provide a comprehensive analysis of your financial costs.

This tool calculates the cost components of both debt and equity. It includes specific calculations for the tax cost of debt and the equity cost of debt to help you understand the various financial burdens on your capital.

Introduction

A Free WACC Calculator Template will help you to calculate WACC based on the cost of equity, capital structure, and cost of debt.

The formula in the Financial Model we used is :

WACC  =  (E/V x Re)  +  ((D/V x Rd)  x  (1 – T))

Where,

E = market value of the firm’s equity (market cap)
D = market value of the firm’s debt
V = total value of capital (equity plus debt)
E/V = percentage of capital that is equity
D/V = percentage of capital that is debt
Re = cost of equity (required rate of return)
Rd = cost of debt (yield to maturity on existing debt)
T = tax rate

FAQs

1. How do I use the WACC Calculator?
Enter your company’s cost of equity, cost of debt, market values, and tax rate — the calculator will compute your WACC automatically.

2. Can the calculator handle both debt and equity financing?
Yes, it combines both to show your overall weighted average cost of capital.

3. Do I need to include taxes?
Yes, input your corporate tax rate to get an accurate after-tax cost of debt.

4. What does the WACC result tell me?
It shows the minimum return your business needs to earn to satisfy investors and lenders.

5. Can I use the calculator for project evaluation?
Yes, you can use the calculated WACC as a discount rate to evaluate investment or project returns.

Terms of Use

Oak Business Consultant and our Weighted Average Cost of Capital Calculator is not affiliated with any specific software or platform unless stated otherwise.

Your purchase grants you a SINGLE LICENSE FOR PERSONAL OR BUSINESS USE only. Redistribution, resale, or sharing of this template is strictly prohibited. If you find this calculator

useful, please direct others to our store.

Note

This is a digital Excel file. Due to the nature of digital products, returns or exchanges are not available.

Please reach out with any questions before purchasing.

Need More Help?

To get a Customized Calculator made, email us at info@oakbusinessconsultant.com

Walkthrough Video For The Weighted Average Cost of Capital Calculator

If you have any confusion regarding the Calculator then watch the video below for better understanding.