The WACC Calculator is a clear and concise tool to calculate the weighted average cost of capital for a company, that is, the average cost of equity and debt for said company. WACC measures a firm’s cost of capital, giving equal weight to each category of capital.
This model considers the values of your Balance sheet positions to help you in calculating the cost of your capital. The WACC calculator displays the minimum return that a company needs to earn on its existing asset base to produce value for its creditors, owners, and other providers of capital.
It is important for a company to know its weighted average cost of capital in order to ascertain the expense of funding future projects. The lower a company's WACC is, the cheaper it is for a company to finance new projects. WACC will also help investors to decide whether or not to invest in a company.
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1 WACC Calculator excel sheet