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Debt cost — Weighted Capital Cost Calculator

Weighted Capital Cost: Calculate debt cost from Weighted cost, Equity cost, Equity weight. Check the formula, input units and worked result on this page.

Enter your values

%
Formula symbol: w. Enter the percentage as a number: for 15%, enter 15. Use a non-negative value. Allowed range: 0–100.
%
Formula symbol: equity. Enter the percentage as a number: for 15%, enter 15. Use a non-negative value. Allowed range: 0–100.
%
Formula symbol: weight. Enter the percentage as a number: for 15%, enter 15. Must be greater than zero. Allowed range: 0.001–99.999.

Use a decimal point, without thousands separators.

Enter debt cost already on the intended pre- or post-tax basis; no tax shield is calculated. The scenario is not a market quote or an earnings guarantee.
Example result
Debt cost
6 %

The initial result uses the example values. Enter your own values and calculate again.

Edit inputs

How it works

The equity weight and remaining debt weight combine two capital costs entered on a consistent basis. This form solves for debt cost; enter the known quantities in Weighted cost, Equity cost, Equity weight.

Inputs and units
Debt cost — Weighted Capital Cost Calculator · Inputs and units
InputExample valueWhat to enter
Weighted cost9 %Formula symbol: w. Enter the percentage as a number: for 15%, enter 15. Use a non-negative value. Allowed range: 0–100.
Equity cost12 %Formula symbol: equity. Enter the percentage as a number: for 15%, enter 15. Use a non-negative value. Allowed range: 0–100.
Equity weight50 %Formula symbol: weight. Enter the percentage as a number: for 15%, enter 15. Must be greater than zero. Allowed range: 0.001–99.999.
debt = ((w - ((equity * weight) / 100)) / (1 - (weight / 100)))

Worked example

Show example inputs and results

This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.

Weighted cost
9 %
Equity cost
12 %
Equity weight
50 %

Complete example results

Debt cost
6 %

Reading the result

The result solves for debt cost from the entered quantities. Check the result unit and the formula conditions before using it.

Questions and answers

Can I use the example values for my own calculation?

The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.

When can I use the debt cost result?

Enter debt cost already on the intended pre- or post-tax basis; no tax shield is calculated. The scenario is not a market quote or an earnings guarantee.

Why are some results rounded?

Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.

Are my inputs sent to a server?

The calculator processes inputs in your browser. Its code does not send your values to a server.

Method sources: openstax.org

Methods & accuracy

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