The Crimson Bench

ProFinance · Simulator

WACC Simulator

Your blended cost of capital.

Assumptions

WACC

11%

Equity weight

80%

Debt weight

20%

ComponentValue
Equity weight × cost10%
Debt weight × after-tax cost1%
WACC11%

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Built by The Crimson Bench · Educational model, not financial advice

About the WACC Simulator

Weight the cost of equity and after-tax cost of debt to get the weighted average cost of capital — the discount rate behind every valuation.

It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.

How the WACC Simulator Works

The model takes 5 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.

The Inputs

AssumptionExample value
Equity value$8,000,000
Debt value$2,000,000
Cost of equity12%
Cost of debt7%
Tax rate21%

Worked Example

Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.

WACC

11%

Equity weight

80%

Debt weight

20%

ComponentValue
Equity weight × cost10%
Debt weight × after-tax cost1%
WACC11%

The Operator's Read

Debt is cheaper than equity — and tax-deductible — so more leverage lowers WACC, up to a point. Beyond it, rising financial risk pushes both costs up. WACC is the hurdle every project and valuation must clear. Educational only.

Assumptions & Limitations

  • The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
  • Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
  • It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
  • This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.

Frequently Asked Questions

What does the WACC Simulator calculate?

Weight the cost of equity and after-tax cost of debt to get the weighted average cost of capital — the discount rate behind every valuation. It takes 5 assumptions — Equity value, Debt value, Cost of equity, Cost of debt, Tax rate — and returns WACC, Equity weight, Debt weight, along with a full projection table you can export.

How do I use the WACC Simulator?

Enter your own figures in the input fields above — Equity value, Debt value, Cost of equity, and the rest. The model recalculates instantly and shows the resulting WACC and full breakdown. No sign-up needed to run it.

Is the WACC Simulator free?

Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.

What's the difference between this and a free calculator?

A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.

Who built the WACC Simulator?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.

Is this financial advice?

No. The WACC Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.

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The Crimson Bench · Est. 2002 · Founded in New York City

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