Weighted Average Cost of Capital Formula By Matthew Frankel, CFP – Updated Jun 8, 2025 at 10:50PM Key Points ...

The weighted average cost of capital (WACC) calculates a company's cost of capital, proportionately weighing its use of debt and equity financing.

A] Calculating Weighted Average when the weights add up to 100% Place your cursor in cell B9. Write the following function in the Formula bar: =SUMPRODUCT(B2:B8,C2:C8) ...

The weighted average cost of capital (WACC) is a financial ratio that measures a company's financing costs. It weighs equity and debt proportionally to its percentage of the total capital structure.

The weighted average cost of capital, or WACC, is a key business metric, usually expressed as a percentage or ratio, which measures the costs associated with raising funds through different ...

Here's the general formula for calculating the weighted average cost of capital (WACC): Image source: The Motley Fool. Here are five steps that will make this easier: ...

After-tax weighted average cost of capital: The same calculation method as detailed earlier but with the cost of debt modified to reflect the company’s tax rate (since interest can be deducted).

There is no fixed value that can be considered a “good” weighted average cost of capital (WACC) for a company, as the appropriate WACC will depend on a variety of factors, such as the industry ...