{"success":true,"version":"v1","request":{"tool":"get_calculator_schema","calculator_id":"wacc"},"result":{"entity_type":"calculator","id":"wacc","calculator_id":"wacc","canonical_url":"https://tttkmbb.com/investing/wacc","name":"WACC Calculator","title":"WACC Calculator – Weighted Average Cost of Capital with Tax-Adjusted Debt and Preferred Stock","category":"investing","category_name":"Investing & Real Estate","tool_name":"calculate_wacc","featured_mcp_tool":false,"description":"Computes the weighted average cost of capital from the market values and costs of equity, debt and optional preferred stock, applying the corporate tax shield to the cost of debt.","use_when":"You need a discount rate for a company's cash flows, or want to see how the debt/equity mix and tax rate change the overall cost of capital.","do_not_use_when":"You only need the cost of equity itself (use capm) or the capital structure changes over the forecast period. Informational only; not financial advice.","inputs":[{"name":"equity_value","label":"Equity value (E)","type":"number","required":true,"min":0,"max":1000000000000000,"description":"Market value of equity (share price × shares).","example":600},{"name":"debt_value","label":"Debt value (D)","type":"number","required":true,"min":0,"max":1000000000000000,"description":"Market (or book) value of interest-bearing debt.","example":400},{"name":"cost_of_equity_percent","label":"Cost of equity","type":"number","unit":"%","required":true,"min":0,"max":100,"description":"Required return on equity in percent (e.g. from CAPM).","example":10},{"name":"cost_of_debt_percent","label":"Cost of debt (pre-tax)","type":"number","unit":"%","required":true,"min":0,"max":100,"description":"Pre-tax interest rate on the debt in percent.","example":5},{"name":"tax_rate_percent","label":"Corporate tax rate","type":"number","unit":"%","required":true,"min":0,"max":100,"description":"Marginal corporate tax rate; interest is tax-deductible so debt costs (1 − t) × rate.","example":25},{"name":"preferred_value","label":"Preferred stock value (P)","type":"number","required":false,"default":0,"min":0,"max":1000000000000000,"description":"Market value of preferred stock, if any.","example":0},{"name":"cost_of_preferred_percent","label":"Cost of preferred stock","type":"number","unit":"%","required":false,"min":0,"max":100,"description":"Preferred dividend yield in percent; required when preferred_value > 0.","example":7}],"outputs":[{"name":"wacc_percent","label":"WACC","type":"number","unit":"%","decimals":2,"description":"E/V·ke + D/V·kd·(1 − t) + P/V·kp."},{"name":"weight_equity_percent","label":"Equity weight","type":"number","unit":"%","decimals":2,"description":"E / (E + D + P) × 100."},{"name":"weight_debt_percent","label":"Debt weight","type":"number","unit":"%","decimals":2,"description":"D / (E + D + P) × 100."},{"name":"weight_preferred_percent","label":"Preferred weight","type":"number","unit":"%","decimals":2,"description":"P / (E + D + P) × 100."},{"name":"after_tax_cost_of_debt_percent","label":"After-tax cost of debt","type":"number","unit":"%","decimals":2,"description":"cost_of_debt × (1 − tax_rate)."},{"name":"total_capital","label":"Total capital (V)","type":"number","decimals":2,"description":"E + D + P."}],"input_schema":{"type":"object","properties":{"equity_value":{"description":"Market value of equity (share price × shares).","type":"number","minimum":0,"maximum":1000000000000000,"examples":[600]},"debt_value":{"description":"Market (or book) value of interest-bearing debt.","type":"number","minimum":0,"maximum":1000000000000000,"examples":[400]},"cost_of_equity_percent":{"description":"Required return on equity in percent (e.g. from CAPM). 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Book debt is a common approximation when bonds are not traded."},{"q":"Why is debt cheaper than equity?","a":"Lenders are paid first and interest is tax-deductible, so debt's after-tax cost is lower; adding debt does, however, raise the risk and hence the cost of equity."}],"tags":["wacc","cost of capital","cost of debt","capital structure","discount rate","tax shield"],"related":[{"calculator_id":"capm","reason":"Estimate the cost of equity input."},{"calculator_id":"dcf-valuation","reason":"Use the WACC as the discount rate."},{"calculator_id":"npv","reason":"Appraise a project at the cost of capital."}],"links":{"html":"https://tttkmbb.com/investing/wacc","markdown":"https://tttkmbb.com/investing/wacc.md","json":"https://tttkmbb.com/investing/wacc.json","api":"https://tttkmbb.com/api/v1/calculate/wacc","schema":"https://tttkmbb.com/api/v1/calculators/wacc","openapi":"https://tttkmbb.com/openapi.json","mcp":"https://tttkmbb.com/mcp"},"version":"v1","updated_at":"2026-09-24"},"timestamp":"2026-09-24T03:44:29Z"}