## What is Weighted Average Cost of Capital (WACC)?

Weighted average cost of capital (WACC) is the overall cost of capital of a firm derived by a weighted average of the cost of equity, preferred and debt capital. Weights are nothing but the respective weight of each type of capital.

## WACC Formula

The mathematical expression of the formula of WACC is as follows:

## About Calculator of WACC

This calculator calculates exactly the weighted average cost of capital (WACC) with three major types of capital viz. equity capital, preference capital and debt. It will show the WACC result in % after rounding off the result to 2 digits.