SmartHelping / Valuation / Excel
WACC Calculator
Calculate a defensible weighted average cost of capital and connect it directly to a 15-year discounted cash flow analysis. Work through debt, equity, tax and market assumptions with the formulas visible and explained.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the model in action
Walk through the inputs, formulas and valuation outputs.
See how capital structure, borrowing costs, taxes, market returns and beta combine into a WACC that feeds the discounted cash flow analysis.
What the template includes
A guided cost-of-capital calculation with a connected DCF.
Use visible formulas and explained inputs to estimate the required return for a project or business, then test how the result affects present value.
Work through every calculation section
Move from the underlying debt, tax, capital structure and market assumptions to the final WACC with each component clearly presented.
Account for the interest tax benefit
The template automatically reduces the stated cost of debt by the corporate tax rate so the weighted calculation uses the after-tax borrowing cost.
Connect market risk to the required equity return
Combine the risk-free rate, expected market return and beta to estimate the cost of equity through the capital asset pricing model.
Weight debt and equity correctly
Apply the debt and equity percentages to their respective required returns, then combine the results into one weighted discount rate.
Test changes in key market assumptions
Review how different combinations of risk-free rates and expected market returns affect the calculated WACC.
Use the WACC in a valuation schedule
The included discounted cash flow analysis references the WACC output directly and evaluates as many as 15 years of project cash flows.
See how the discount-rate drivers affect value
Evaluate DCF net present value across changing risk-free rates and expected market returns to understand the valuation range.
Use the file format that fits your workflow
The purchase includes Excel and Google Sheets versions. The Google Sheets version excludes the Excel What-If sensitivity tables because that feature is not available in Google Sheets.
How WACC is calculated
Translate financing and market risk into one discount rate.
WACC estimates the blended return required by debt and equity capital providers. A higher rate represents a higher required return and reduces the present value of the same future cash flows.
After-tax cost of debt
Start with the weighted borrowing rate and multiply it by one minus the corporate tax rate. For example, a 25% tax rate means 75% of the stated interest rate is used as the after-tax cost of debt.
Cost of equity through CAPM
Subtract the risk-free rate from the expected market return to calculate the market risk premium. Multiply that premium by beta, then add the risk-free rate.
Debt and equity weights
Multiply the after-tax cost of debt by the debt share of total capital and multiply the cost of equity by the equity share of total capital.
Final WACC and project value
Add the weighted debt and equity costs. The resulting WACC becomes the discount rate used to calculate DCF net present value and assess whether projected cash returns compensate for the modeled risk.
How to use it
Move from financing assumptions to a valuation range.
Define debt and tax assumptions
Enter the borrowing cost, corporate tax rate and the debt share of the capital structure to calculate the after-tax debt contribution.
Set the equity-market assumptions
Enter the risk-free rate, expected market return and beta to calculate the required equity return through CAPM.
Review WACC and sensitivity
Confirm the debt and equity weights, review the blended cost of capital and test different risk-free and market-return combinations.
Apply the rate to the DCF
Enter the project cash flows, review the 15-year discounted cash flow result and compare NPV across the sensitivity cases.
Who gets value from it
Built for people who need to explain the discount rate.
Business owners and founders
Estimate a risk-adjusted return threshold before evaluating the cash flows and exit value of a new venture.
Financial analysts
Build a visible WACC calculation that can be referenced by a DCF and updated as capital-market assumptions change.
Investors and acquisition teams
Compare the projected return of a deal with the blended return required by debt and equity capital.
Accountants, advisors and students
Follow the formulas step by step and explain the relationship among tax, leverage, CAPM, WACC, IRR and NPV.
Also available in these bundles
Need a broader valuation or accounting toolkit?
The WACC Calculator is also included in the Valuation and Accounting template bundles.
Valuation Templates Bundle
Explore DCF, comparable-value, transaction and investment-return tools for analyzing businesses and projects.
View Valuation BundleAccounting Templates Bundle
Get models for financial analysis, costing, accounting schedules, valuation inputs and business planning.
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Review the assumptions behind the calculation.
Questions before you buy
A few useful details.
What does WACC measure?
Weighted average cost of capital estimates the blended return required by the debt and equity used to finance a business or project. It is commonly used as the discount rate in a DCF analysis.
How does the model calculate the cost of debt?
The template applies the corporate tax rate to the stated borrowing cost so the WACC uses the after-tax cost of debt.
How is the cost of equity calculated?
The CAPM section uses the risk-free rate, expected market return and beta. The market risk premium equals the expected market return minus the risk-free rate, and beta scales that premium before the risk-free rate is added back.
What sensitivity analyses are included?
The Excel version shows WACC sensitivity and DCF NPV sensitivity across different risk-free rates and expected market returns.
What is the difference between the Excel and Google Sheets versions?
Both versions include the main WACC and DCF calculations. The Google Sheets version does not include the sensitivity tables because Google Sheets does not provide the same native What-If Data Table feature used in Excel.
Is the model included in a bundle?
Yes. The WACC Calculator is included in both the Valuation Templates Bundle and the Accounting Templates Bundle linked above.
Put a reasoned discount rate behind the valuation
Connect capital structure, market risk and DCF value.
Build the WACC step by step, test the major assumptions and apply the result to a 15-year discounted cash flow analysis. One-time purchase for $45.
