How to Calculate WACC?

by Easy Excel Tutorials May 31, 2022

Before calculating the Weighted Average Cost of Capital, it is crucial to have some kind of data.

This data would looks something like this:

wacc table data

Click on B7 (1), and type in =B4+B5*(B6-B4) (2), and press enter, to calculate the cost of equity.

calculations

Note: If the result shows number, just change it to percentage with the format cell.

Click on cell beside debt’s expenses (1), and type in =B11*(1-B12) (2), and then press enter.

expenses

Click on the cell beside Value (1), and type =E4*E5 (2), to calculate the value on Equity’s amount.

value

Click on beside the value under debt’s amount (1), and type in =E11*E12, and then enter.

debt value

Click beside Total capital (1), and type in =E6+E13 (2).

total capital

Click on the cell beside WACC (1), type =B7*E6/E15+B13*E13/E15, and press enter.

wacc calculations

This is how to calculate WACC in Excel.

Template

You can download the Template here – Download

Further reading: 
Basic concepts 
Getting started with Excel
Cell References