Financing tools

WACC Calculator

What does your money really cost, across shareholders and lenders? Enter your capital structure, CAPM inputs and cost of debt and see the minimum return your projects must earn.

Weighted average cost of capital (WACC) calculator

Value of equity (billion toman)Risk-free rate (%)BetaMarket risk premium (%)Company-specific risk premium (%)Income tax rate (%)Expected inflation (%)

Debt and financing sources

Enter each source separately: its current balance and its effective yearly cost (not the contract rate).

Balance (billion toman)Effective cost (%)Tax-deductibleShare-

Cost of equity-

Average pre-tax cost of debt-

After-tax cost of debt-

Debt share of capital-

Weighted average cost of capital (WACC)-

The same, after inflation-

WACC is the minimum return the company's projects and assets must earn to satisfy both lenders and shareholders; a project that earns less destroys value. The cost of equity uses the capital asset pricing model (CAPM): risk-free rate + beta × market risk premium + a company-specific premium. For the risk-free rate you can use the yield to maturity of Islamic treasury bills. Enter each debt source separately and take its cost from the financing cost simulator so fees, deposits and guarantees are included. Leave out debts that carry no cost, such as trade payables. If a source's cost is not tax-deductible, untick it. For a listed company use the market value of its shares; otherwise a recent valuation or book value. The default numbers are only examples; enter your own.