WACC Calculator

One calculator for both annual and semiannual coupon bonds, with a choice of equity method: Dividend Growth Model or CAPM.

After-tax Cost of Debt

Cost of Equity

Equity Method

WACC
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Cost of Debt

Works for either annual or semiannual coupon bonds.

Bond market price

Use the bond's current market price.

Face value (par)

Default is 1000.

Years left to maturity

Enter years, not number of periods.

Coupon frequency

Choose annual or semiannual.

Annual coupon payment ($)

Enter the total annual coupon payment. For semiannual bonds, do not divide by 2 here.

Tax rate (%)

Enter 34 for 34%.

Flotation percentage (%)

Example: if flotation fee is 50 and price is 1000, enter 5.

Pre-tax annual yield

After-tax cost of debt

If a coupon rate is given instead of coupon payment, first convert it: annual coupon payment = coupon rate × par value.

Cost of Equity

Choose either Dividend Growth Model or CAPM.

Equity method

Students can calculate WACC using debt + dividend model, or debt + CAPM.

Using: Dividend Growth Model

Dividend next year, D₁

If D₀ is given, convert to D₁ first: D₁ = D₀(1+g).

Current stock price

Use the current market price.

Flotation percentage (%)

Enter 6 for 6%.

Growth rate (%)

Enter 5 for 5%.

Net proceeds per share

Cost of equity

Dividend model: K_e = D₁ / P_net + g

Capital Weights

Enter how much debt and equity the project uses.

Total debt

Amount of debt financing used for the project.

Equity

Amount of equity financing used for the project.

Total capital

Weight of debt

Weight of equity

Final WACC here uses only debt + common equity.