How do you calculate WACC?

WACC = (E/V) × Re + (D/V) × Rd × (1 − Tc). E is the market value of equity (market cap) and D is total debt, so V = E + D. Re is the cost of equity, Rd is the cost of debt and Tc is the tax rate. This calculator fills in E, D, Rd and Tc from the company's latest 12 months of filings. If a company reports debt but no interest expense, Rd is estimated as the risk-free rate plus a 1.5% credit spread and labelled as an estimate. You can change every input.

What does a WACC of 12% mean?

The company's shareholders and lenders together expect about 12% a year for funding it. A project that earns less than 12% loses value for them. A project that earns more adds value. Analysts also use 12% as the discount rate for that company's future cash flows.

A lower WACC means cheaper money, but a good WACC depends on the business. Large, stable companies are often at 6–9%. Smaller or riskier ones can be above 12%. The gap that matters is between WACC and the return on invested capital: a company that earns 15% on money that costs 8% builds value.

How do I find the beta for a WACC calculation?

Beta shows how much a stock moves with the market. Data providers usually measure it from five years of monthly returns against an index such as the S&P 500, and most quote pages show it. Here it is an input you can change: 1.0 is the market average, defensive stocks are below 1 and cyclical stocks above.

What are the limits of WACC?

WACC assumes that the mix of debt and equity, the risk and today's tax rate stay the same. It also depends on estimates of beta and the equity risk premium. For a company with changing debt, losses or an unusual tax position, treat the result as a starting range and test how much your valuation depends on it.

Free tool

WACC Calculator

Weighted average cost of capital, filled in from a company's latest filings. You can change every input.

Try:

Apple Inc. (AAPL)filings TTM 2026-06-27

Weighted average cost of capital

9.43%

That's elevated. Investors demand this from smaller, more cyclical or more leveraged businesses, and future cash flows get discounted hard.

Cost of equity (Re): 9.50%
Cost of debt (Rd, estimate): 6.50%
After-tax Rd (estimate): 5.38%
Equity weight (E/V): 98.3%
Debt weight (D/V): 1.7%

Interest expense is 0 or missing, so the cost of debt is estimated as the risk-free rate plus a 1.5% credit spread. Enter the real interest expense under “Adjust the inputs & assumptions” to replace it.

Adjust the inputs & assumptions

Company financials — from filings, TTM 2026-06-27

Market cap (equity, E)

Total debt (D)

Interest expense (annual)

Cost of debt Rd = interest expense ÷ total debt. At 0, Rd is estimated as Rf + 1.5%.

Effective tax rate (Tc)

Market assumptions

Beta (β)

1.0 = moves with the market

Risk-free rate (Rf)US Treasury 10Y, 2026-10-26

Equity risk premium (ERP)

Extra return demanded for stocks over Treasuries (~4–5.5%)

How to calculate WACC for any company

Type a ticker, such as AAPL, and select Get WACC.
We fill in market cap, debt, interest expense and tax rate from the latest 12 months of filings.
Check that the cost of equity is higher than the cost of debt. It almost always is.
Open Adjust the inputs to change beta, the risk-free rate or the equity risk premium.
Compare the result with the company's return on capital. The company creates value only when that return is higher.

Filings data updates when each company reports. The 10-year Treasury yield updates daily.

How this was calculated

WACC = (E/V) × Re + (D/V) × Rd × (1 − Tc)

E is market cap and D is total debt, from the latest 12-month balance sheet, so V = E + D. Re comes from CAPM: Re = Rf + β × ERP, with Rf the current 10-year US Treasury yield. Rd is interest expense divided by total debt. Tc is income tax divided by pre-tax income, because interest reduces tax.

These are estimates for learning, not investment advice.

What WACC tells you

WACC is the return a company must earn to pay both its shareholders and its lenders. Analysts use it as the discount rate in a DCF valuation. A higher WACC makes future cash worth less today, so the company is worth less.

An example: a company has $80 billion of equity and $20 billion of debt, so 80% equity and 20% debt. Equity costs 9%. Debt costs 5% before a 21% tax rate. WACC = 0.8 × 9% + 0.2 × 5% × (1 − 0.21) = 7.99%.

Interest reduces tax, so WACC uses the after-tax cost of debt. That is why some debt can lower WACC, until default risk raises both costs. Most analysts estimate the cost of equity with CAPM, and our cost of equity calculator does that step.

What is a typical WACC?

Rough ranges at today's rates.

5–7%: Large, steady companiesUtilities and consumer staples, with stable cash flow and cheap debt.
6–9%: Established large companiesMost of the S&P 500 is here.
8–11%: Growth and mid-size companiesMore equity, higher beta, more expensive money.
10–14%+: Small or volatile companiesHigh beta, high debt or under stress.

Prefer a spreadsheet? Download the WACC Excel template.

WACC for popular companies

Each one opens with that company's latest filings.

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Questions

WACC = (E/V) × Re + (D/V) × Rd × (1 − Tc). E is the market value of equity (market cap) and D is total debt, so V = E + D. Re is the cost of equity, Rd is the cost of debt and Tc is the tax rate. This calculator fills in E, D, Rd and Tc from the company's latest 12 months of filings. If a company reports debt but no interest expense, Rd is estimated as the risk-free rate plus a 1.5% credit spread and labelled as an estimate. You can change every input.
The company's shareholders and lenders together expect about 12% a year for funding it. A project that earns less than 12% loses value for them. A project that earns more adds value. Analysts also use 12% as the discount rate for that company's future cash flows.
A lower WACC means cheaper money, but a good WACC depends on the business. Large, stable companies are often at 6–9%. Smaller or riskier ones can be above 12%. The gap that matters is between WACC and the return on invested capital: a company that earns 15% on money that costs 8% builds value.
Beta shows how much a stock moves with the market. Data providers usually measure it from five years of monthly returns against an index such as the S&P 500, and most quote pages show it. Here it is an input you can change: 1.0 is the market average, defensive stocks are below 1 and cyclical stocks above.
WACC assumes that the mix of debt and equity, the risk and today's tax rate stay the same. It also depends on estimates of beta and the equity risk premium. For a company with changing debt, losses or an unusual tax position, treat the result as a starting range and test how much your valuation depends on it.