Calculate the Weighted Average Cost of Capital with equity (CAPM), debt, and preferred stock. Includes sensitivity analysis and capital structure visualization.
Enter market values or weights — auto-normalized to 100%
Equity (E)
Debt (D)
Preferred (P)
CAPM: Ke = Rf + Beta x (Rm - Rf)
10-yr Treasury
Market sensitivity
Expected market
Rm - Rf
After-tax cost = Kd x (1 - Tax Rate)
Kp = Annual Dividend / Preferred Share Price
WACC vs. Beta (rows) and Pre-Tax Cost of Debt (columns). Orange = your inputs.
WACC Formula
WACC = We*Ke + Wd*Kd*(1-t) + Wp*Kp
W = weight, K = cost of each capital source
CAPM (Cost of Equity)
Ke = Rf + Beta * (Rm - Rf)
Rf = risk-free rate, Beta = systematic risk
What WACC Tells You
Minimum return a company must earn to satisfy all capital providers. Used as discount rate in DCF valuation.
Technology
8-12%
Healthcare
7-10%
Utilities
4-7%
Consumer Goods
6-9%
Financial Services
9-14%