{"product_id":"cost-of-capital","title":"Cost of Capital Calculator","description":"\u003cstyle\u003e\n.coc-calculator {\n  --ink: #0f172a;\n  --muted: #475569;\n  --border: #e2e8f0;\n  --surface: #ffffff;\n  --tint: #f8fafc;\n  --primary: #1d4ed8;\n  --accent: #c2410c;\n  --accent-hover: #9a3412;\n  --chart-1: #1e40af;\n  --chart-2: #0d9488;\n  --chart-3: #7c3aed;\n  --chart-4: #be185d;\n  --chart-5: #334155;\n  color: var(--ink);\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  box-shadow: 0 1px 2px rgba(15, 23, 42, .06);\n  container-type: inline-size;\n  font-family: Inter, ui-sans-serif, system-ui, -apple-system, BlinkMacSystemFont, \"Segoe UI\", sans-serif;\n  font-size: 15px;\n  line-height: 1.55;\n  margin: 0 auto;\n  max-width: 1200px;\n  overflow-wrap: anywhere;\n  padding: 24px;\n  width: 100%;\n}\n.coc-calculator,\n.coc-calculator *,\n.coc-calculator *::before,\n.coc-calculator *::after {\n  box-sizing: border-box;\n}\n.coc-calculator * {\n  min-width: 0;\n}\n.coc-calculator [hidden] {\n  display: none !important;\n}\n.coc-calculator h2,\n.coc-calculator h3,\n.coc-calculator p {\n  margin-top: 0;\n}\n.coc-calculator h2 {\n  font-size: 24px;\n  font-weight: 700;\n  line-height: 1.25;\n  margin-bottom: 8px;\n}\n.coc-calculator h3 {\n  font-size: 18px;\n  font-weight: 650;\n  line-height: 1.35;\n  margin-bottom: 12px;\n}\n.coc-calculator a {\n  color: var(--primary);\n  text-decoration-thickness: 1px;\n  text-underline-offset: 2px;\n}\n.coc-calculator a:hover {\n  text-decoration-thickness: 2px;\n}\n.coc-calculator button,\n.coc-calculator input,\n.coc-calculator select {\n  font: inherit;\n}\n.coc-calculator button,\n.coc-calculator summary,\n.coc-calculator input,\n.coc-calculator select,\n.coc-calculator a {\n  outline: none;\n}\n.coc-calculator button:focus-visible,\n.coc-calculator summary:focus-visible,\n.coc-calculator input:focus-visible,\n.coc-calculator select:focus-visible,\n.coc-calculator a:focus-visible {\n  box-shadow: 0 0 0 3px rgba(29, 78, 216, .24);\n  outline: 2px solid var(--primary);\n  outline-offset: 2px;\n}\n.coc-calculator .coc-header {\n  background: var(--surface);\n  border-bottom: 1px solid var(--border);\n  margin: -24px -24px 0;\n  padding: 24px;\n}\n.coc-calculator .coc-header-copy {\n  color: var(--muted);\n  margin-bottom: 16px;\n  max-width: 760px;\n}\n.coc-calculator .coc-pills {\n  display: flex;\n  flex-wrap: wrap;\n  gap: 8px;\n}\n.coc-calculator .coc-pill {\n  align-items: center;\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 999px;\n  color: var(--muted);\n  display: inline-flex;\n  font-size: 13px;\n  font-weight: 600;\n  gap: 6px;\n  line-height: 1.2;\n  padding: 7px 10px;\n  white-space: nowrap;\n}\n.coc-calculator .coc-pill strong {\n  color: var(--ink);\n  font-variant-numeric: tabular-nums;\n}\n.coc-calculator .coc-toolbar {\n  align-items: center;\n  display: flex;\n  flex-wrap: wrap;\n  gap: 12px;\n  padding: 24px 0 16px;\n}\n.coc-calculator .coc-button {\n  align-items: center;\n  border: 1px solid transparent;\n  border-radius: 6px;\n  cursor: pointer;\n  display: inline-flex;\n  font-size: 15px;\n  font-weight: 700;\n  gap: 10px;\n  justify-content: center;\n  line-height: 1.2;\n  min-height: 48px;\n  padding: 12px 18px;\n  text-align: center;\n  transition: background-color .15s ease, border-color .15s ease, box-shadow .15s ease, transform .15s ease;\n  white-space: nowrap;\n}\n.coc-calculator .coc-button:hover {\n  box-shadow: 0 2px 5px rgba(15, 23, 42, .12);\n  transform: translateY(-1px);\n}\n.coc-calculator .coc-button:active {\n  transform: translateY(0);\n}\n.coc-calculator .coc-button-primary {\n  background: var(--accent);\n  color: #ffffff;\n}\n.coc-calculator .coc-button-primary:hover {\n  background: var(--accent-hover);\n}\n.coc-calculator .coc-button-secondary {\n  background: var(--surface);\n  border-color: #64748b;\n  color: var(--ink);\n}\n.coc-calculator .coc-button-icon {\n  display: block;\n  flex: 0 0 auto;\n  height: 20px;\n  width: 20px;\n}\n.coc-calculator .coc-workspace {\n  display: grid;\n  gap: 16px;\n  grid-template-columns: minmax(0, 1fr);\n}\n.coc-calculator .coc-panel,\n.coc-calculator .coc-section,\n.coc-calculator .coc-advanced,\n.coc-calculator .coc-education {\n  background: var(--surface);\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  box-shadow: 0 1px 2px rgba(15, 23, 42, .04);\n}\n.coc-calculator .coc-panel,\n.coc-calculator .coc-section,\n.coc-calculator .coc-education {\n  padding: 20px;\n}\n.coc-calculator .coc-section,\n.coc-calculator .coc-advanced,\n.coc-calculator .coc-education {\n  margin-top: 16px;\n}\n.coc-calculator .coc-section-intro {\n  color: var(--muted);\n  margin-bottom: 16px;\n  max-width: 780px;\n}\n.coc-calculator .coc-field-grid {\n  display: grid;\n  gap: 16px;\n  grid-template-columns: minmax(0, 1fr);\n}\n.coc-calculator .coc-field {\n  display: flex;\n  flex-direction: column;\n  gap: 6px;\n}\n.coc-calculator .coc-label {\n  color: var(--ink);\n  display: block;\n  font-size: 14px;\n  font-weight: 600;\n}\n.coc-calculator .coc-control-wrap {\n  position: relative;\n}\n.coc-calculator .coc-input,\n.coc-calculator .coc-select {\n  background: var(--surface);\n  border: 1px solid #64748b;\n  border-radius: 6px;\n  color: var(--ink);\n  font-size: 15px;\n  font-variant-numeric: tabular-nums;\n  height: 48px;\n  line-height: 1.2;\n  padding: 10px 12px;\n  width: 100%;\n}\n.coc-calculator .coc-input:hover,\n.coc-calculator .coc-select:hover {\n  border-color: #475569;\n}\n.coc-calculator .coc-input[aria-invalid=\"true\"] {\n  border-color: #b91c1c;\n}\n.coc-calculator .coc-helper,\n.coc-calculator .coc-error {\n  font-size: 13px;\n  font-weight: 500;\n  line-height: 1.4;\n  min-height: 36px;\n}\n.coc-calculator .coc-helper {\n  color: var(--muted);\n}\n.coc-calculator .coc-error {\n  color: #991b1b;\n}\n.coc-calculator .coc-result-primary {\n  border-bottom: 1px solid var(--border);\n  padding-bottom: 16px;\n}\n.coc-calculator .coc-result-eyebrow {\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 700;\n  letter-spacing: .03em;\n  margin-bottom: 4px;\n  text-transform: uppercase;\n}\n.coc-calculator .coc-result-value {\n  color: var(--primary);\n  font-size: 30px;\n  font-variant-numeric: tabular-nums;\n  font-weight: 700;\n  letter-spacing: -.02em;\n  line-height: 1.15;\n  margin-bottom: 8px;\n}\n.coc-calculator .coc-result-summary {\n  color: var(--muted);\n  margin-bottom: 0;\n}\n.coc-calculator .coc-metric-list {\n  display: grid;\n  gap: 0;\n  margin-top: 8px;\n}\n.coc-calculator .coc-metric {\n  align-items: start;\n  border-bottom: 1px solid var(--border);\n  display: grid;\n  gap: 8px 16px;\n  grid-template-columns: minmax(0, 1fr) auto;\n  padding: 14px 0;\n}\n.coc-calculator .coc-metric:last-child {\n  border-bottom: 0;\n  padding-bottom: 0;\n}\n.coc-calculator .coc-metric-label {\n  color: var(--muted);\n  font-size: 14px;\n  font-weight: 600;\n}\n.coc-calculator .coc-metric-value {\n  color: var(--ink);\n  font-size: 20px;\n  font-variant-numeric: tabular-nums;\n  font-weight: 700;\n  text-align: right;\n}\n.coc-calculator .coc-metric-note {\n  color: var(--muted);\n  font-size: 13px;\n  grid-column: 1 \/ -1;\n}\n.coc-calculator .coc-breakdown-grid {\n  display: grid;\n  gap: 12px;\n  grid-template-columns: repeat(auto-fit, minmax(210px, 1fr));\n}\n.coc-calculator .coc-component {\n  border-left: 4px solid var(--chart-1);\n  padding: 8px 12px;\n}\n.coc-calculator .coc-component-equity {\n  border-left-color: var(--chart-2);\n}\n.coc-calculator .coc-component-label {\n  color: var(--muted);\n  font-size: 13px;\n  font-weight: 700;\n  margin-bottom: 2px;\n}\n.coc-calculator .coc-component-value {\n  font-size: 20px;\n  font-variant-numeric: tabular-nums;\n  font-weight: 700;\n  margin-bottom: 2px;\n}\n.coc-calculator .coc-component-detail {\n  color: var(--muted);\n  font-size: 13px;\n}\n.coc-calculator .coc-chart-card {\n  display: flex;\n  flex-direction: column;\n  gap: 16px;\n}\n.coc-calculator .coc-chart-cluster {\n  align-items: center;\n  display: grid;\n  gap: 20px;\n  grid-template-columns: minmax(0, 1fr);\n  justify-content: center;\n  margin: 0 auto;\n  max-width: 720px;\n  width: 100%;\n}\n.coc-calculator .coc-chart-visual-wrap {\n  align-items: center;\n  display: flex;\n  justify-content: center;\n  min-height: 240px;\n  width: 100%;\n}\n.coc-calculator .coc-chart-visual {\n  display: block;\n  height: auto;\n  max-width: 280px;\n  overflow: visible;\n  width: min(100%, 280px);\n}\n.coc-calculator .coc-chart-center-title {\n  fill: var(--muted);\n  font-size: 13px;\n  font-weight: 600;\n  text-anchor: middle;\n}\n.coc-calculator .coc-chart-center-value {\n  fill: var(--ink);\n  font-size: 24px;\n  font-weight: 700;\n  text-anchor: middle;\n}\n.coc-calculator .coc-chart-legend {\n  display: grid;\n  gap: 10px;\n  justify-content: center;\n}\n.coc-calculator .coc-legend-row {\n  align-items: center;\n  display: grid;\n  font-size: 13px;\n  gap: 8px 12px;\n  grid-template-columns: 12px minmax(88px, max-content) max-content max-content;\n}\n.coc-calculator .coc-legend-swatch {\n  border-radius: 3px;\n  display: block;\n  height: 12px;\n  width: 12px;\n}\n.coc-calculator .coc-legend-name {\n  color: var(--ink);\n  font-weight: 600;\n}\n.coc-calculator .coc-legend-value,\n.coc-calculator .coc-legend-share {\n  color: var(--muted);\n  font-variant-numeric: tabular-nums;\n  font-weight: 600;\n  white-space: nowrap;\n}\n.coc-calculator .coc-chart-card.coc-chart-empty-mode .coc-chart-visual-wrap {\n  min-height: 0;\n}\n.coc-calculator .coc-chart-card.coc-chart-empty-mode .coc-chart-cluster {\n  max-width: 520px;\n}\n.coc-calculator .coc-chart-empty {\n  align-items: center;\n  background: var(--tint);\n  border: 1px dashed #64748b;\n  border-radius: 6px;\n  color: var(--muted);\n  display: flex;\n  font-size: 14px;\n  justify-content: center;\n  min-height: 96px;\n  padding: 16px;\n  text-align: center;\n  width: 100%;\n}\n.coc-calculator .coc-chart-table-wrap,\n.coc-calculator .coc-table-overflow {\n  max-width: 100%;\n  overflow-x: auto;\n  width: 100%;\n}\n.coc-calculator .coc-data-table {\n  border-collapse: collapse;\n  font-variant-numeric: tabular-nums;\n  min-width: 560px;\n  width: 100%;\n}\n.coc-calculator .coc-data-table th,\n.coc-calculator .coc-data-table td {\n  border-bottom: 1px solid var(--border);\n  font-size: 13px;\n  padding: 10px 12px;\n  text-align: left;\n  vertical-align: top;\n}\n.coc-calculator .coc-data-table th {\n  background: var(--tint);\n  color: var(--ink);\n  font-weight: 700;\n}\n.coc-calculator .coc-data-table td.coc-num,\n.coc-calculator .coc-data-table th.coc-num {\n  text-align: right;\n  white-space: nowrap;\n}\n.coc-calculator .coc-chart-caption,\n.coc-calculator .coc-table-note {\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 6px;\n  color: var(--muted);\n  font-size: 13px;\n  margin-top: 16px;\n  padding: 10px 12px;\n}\n.coc-calculator .coc-table-note {\n  margin-top: 16px;\n}\n.coc-calculator .coc-safe-stack .coc-chart-cluster {\n  grid-template-columns: minmax(0, 1fr) !important;\n  row-gap: 24px !important;\n}\n.coc-calculator .coc-safe-stack .coc-chart-legend {\n  margin-top: 0 !important;\n}\n.coc-calculator .coc-safe-stack .coc-chart-caption {\n  margin-top: 20px !important;\n}\n.coc-calculator .coc-safe-table-stack .coc-table-overflow {\n  height: auto !important;\n  max-height: none !important;\n}\n.coc-calculator .coc-safe-table-stack .coc-table-note {\n  margin-top: 20px !important;\n}\n.coc-calculator .coc-advanced {\n  overflow: visible;\n}\n.coc-calculator .coc-advanced summary {\n  cursor: pointer;\n  font-size: 18px;\n  font-weight: 650;\n  list-style-position: inside;\n  padding: 18px 20px;\n}\n.coc-calculator .coc-advanced[open] summary {\n  border-bottom: 1px solid var(--border);\n}\n.coc-calculator .coc-advanced-content {\n  padding: 20px;\n}\n.coc-calculator .coc-advanced-copy {\n  color: var(--muted);\n  margin-bottom: 16px;\n}\n.coc-calculator .coc-education {\n  padding: 24px;\n}\n.coc-calculator .coc-education-grid {\n  display: grid;\n  gap: 24px;\n  grid-template-columns: minmax(0, 1fr);\n}\n.coc-calculator .coc-education p,\n.coc-calculator .coc-education li {\n  color: #334155;\n}\n.coc-calculator .coc-education ul {\n  margin: 0 0 16px;\n  padding-left: 22px;\n}\n.coc-calculator .coc-formula {\n  background: var(--tint);\n  border-left: 4px solid var(--primary);\n  border-radius: 0 6px 6px 0;\n  color: var(--ink);\n  font-family: ui-monospace, SFMono-Regular, Menlo, Consolas, monospace;\n  font-size: 14px;\n  margin: 16px 0;\n  padding: 12px 14px;\n}\n.coc-calculator .coc-visually-hidden {\n  border: 0;\n  clip: rect(0 0 0 0);\n  height: 1px;\n  margin: -1px;\n  overflow: hidden;\n  padding: 0;\n  position: absolute;\n  white-space: nowrap;\n  width: 1px;\n}\n@container (min-width: 640px) {\n  .coc-calculator .coc-field-grid {\n    grid-template-columns: repeat(2, minmax(0, 1fr));\n  }\n  .coc-calculator .coc-chart-cluster {\n    grid-template-columns: minmax(240px, 280px) minmax(260px, max-content);\n  }\n}\n@container (min-width: 900px) {\n  .coc-calculator .coc-workspace {\n    grid-template-columns: minmax(0, .92fr) minmax(0, 1.08fr);\n  }\n  .coc-calculator .coc-education-grid {\n    grid-template-columns: repeat(2, minmax(0, 1fr));\n  }\n}\n@container (max-width: 639px) {\n  .coc-calculator {\n    padding: 16px;\n  }\n  .coc-calculator .coc-header {\n    margin: -16px -16px 0;\n    padding: 20px 16px;\n  }\n  .coc-calculator .coc-panel,\n  .coc-calculator .coc-section,\n  .coc-calculator .coc-education {\n    padding: 16px;\n  }\n  .coc-calculator .coc-toolbar {\n    align-items: stretch;\n  }\n  .coc-calculator .coc-button {\n    flex: 1 1 100%;\n  }\n  .coc-calculator .coc-chart-visual-wrap {\n    min-height: 220px;\n  }\n  .coc-calculator .coc-legend-row {\n    grid-template-columns: 12px minmax(72px, 1fr) max-content;\n  }\n  .coc-calculator .coc-legend-share {\n    grid-column: 2 \/ -1;\n    padding-left: 0;\n  }\n  .coc-calculator .coc-chart-caption,\n  .coc-calculator .coc-table-note {\n    margin-top: 12px;\n  }\n}\n@media (prefers-reduced-motion: reduce) {\n  .coc-calculator .coc-button {\n    transition: none;\n  }\n}\n\u003c\/style\u003e\n\u003cdiv class=\"coc-calculator\" data-calculator-root\u003e\n  \u003csection class=\"coc-header\" aria-labelledby=\"coc-title\"\u003e\n    \u003ch2 id=\"coc-title\"\u003eCost of Capital Calculator\u003c\/h2\u003e\n    \u003cp class=\"coc-header-copy\"\u003eCombine the stated cost of debt and cost of equity into a simple financing-rate benchmark, then review each component’s contribution and decision context.\u003c\/p\u003e\n    \u003cdiv class=\"coc-pills\" aria-label=\"Live calculator summary\"\u003e\n      \u003cspan class=\"coc-pill\"\u003eDebt \u003cstrong data-coc-pill-debt\u003e5.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"coc-pill\"\u003eEquity \u003cstrong data-coc-pill-equity\u003e8.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"coc-pill\"\u003eCombined \u003cstrong data-coc-pill-total\u003e13.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"coc-pill\"\u003eReturn spread \u003cstrong data-coc-pill-spread\u003e2.00 pp\u003c\/strong\u003e\u003c\/span\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003cdiv class=\"coc-toolbar\" aria-label=\"Calculator actions\"\u003e\n    \u003cbutton class=\"coc-button coc-button-primary\" type=\"button\" data-coc-download\u003e\n      \u003csvg class=\"coc-button-icon\" viewbox=\"0 0 24 24\" aria-hidden=\"true\" focusable=\"false\"\u003e\u003cpath fill=\"currentColor\" d=\"M11 3a1 1 0 0 1 2 0v9.59l2.3-2.3a1 1 0 1 1 1.4 1.42l-4 4a1 1 0 0 1-1.4 0l-4-4a1 1 0 1 1 1.4-1.42l2.3 2.3V3Zm-6 14a1 1 0 0 1 1 1v1h12v-1a1 1 0 1 1 2 0v2a1 1 0 0 1-1 1H5a1 1 0 0 1-1-1v-2a1 1 0 0 1 1-1Z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n      \u003cspan\u003eDownload Excel\u003c\/span\u003e\n    \u003c\/button\u003e\n    \u003cbutton class=\"coc-button coc-button-secondary\" type=\"button\" data-coc-reset\u003eReset\u003c\/button\u003e\n  \u003c\/div\u003e\n\n  \u003cdiv class=\"coc-workspace\"\u003e\n    \u003csection class=\"coc-panel\" aria-labelledby=\"coc-inputs-heading\"\u003e\n      \u003ch3 id=\"coc-inputs-heading\"\u003eCore financing rates\u003c\/h3\u003e\n      \u003cp class=\"coc-section-intro\"\u003eEnter annual percentage rates. The calculator follows the simple combined-rate method: cost of debt plus cost of equity.\u003c\/p\u003e\n      \u003cdiv class=\"coc-field-grid\"\u003e\n        \u003cdiv class=\"coc-field\"\u003e\n          \u003clabel class=\"coc-label\" for=\"coc-debt-rate\"\u003eCost of debt\u003c\/label\u003e\n          \u003cdiv class=\"coc-control-wrap\"\u003e\n            \u003cinput class=\"coc-input\" id=\"coc-debt-rate\" data-coc-input=\"debtRate\" type=\"text\" inputmode=\"decimal\" value=\"5.00%\" aria-describedby=\"coc-debt-help coc-debt-error\"\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"coc-helper\" id=\"coc-debt-help\"\u003eThe effective annual rate paid to lenders before any weighting or tax adjustment.\u003c\/div\u003e\n          \u003cdiv class=\"coc-error\" id=\"coc-debt-error\" data-coc-error=\"debtRate\" aria-live=\"polite\"\u003e\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coc-field\"\u003e\n          \u003clabel class=\"coc-label\" for=\"coc-equity-rate\"\u003eCost of equity\u003c\/label\u003e\n          \u003cdiv class=\"coc-control-wrap\"\u003e\n            \u003cinput class=\"coc-input\" id=\"coc-equity-rate\" data-coc-input=\"equityRate\" type=\"text\" inputmode=\"decimal\" value=\"8.00%\" aria-describedby=\"coc-equity-help coc-equity-error\"\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"coc-helper\" id=\"coc-equity-help\"\u003eThe annual return shareholders require for bearing the company’s equity risk.\u003c\/div\u003e\n          \u003cdiv class=\"coc-error\" id=\"coc-equity-error\" data-coc-error=\"equityRate\" aria-live=\"polite\"\u003e\u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"coc-panel\" aria-labelledby=\"coc-results-heading\"\u003e\n      \u003ch3 id=\"coc-results-heading\"\u003eLive results\u003c\/h3\u003e\n      \u003cdiv class=\"coc-result-primary\"\u003e\n        \u003cdiv class=\"coc-result-eyebrow\"\u003eSimple combined cost of capital\u003c\/div\u003e\n        \u003cdiv class=\"coc-result-value\" data-coc-result-total\u003e13.00%\u003c\/div\u003e\n        \u003cp class=\"coc-result-summary\" data-coc-result-summary\u003eThis benchmark adds the two stated rates. It is not capital-structure-weighted WACC.\u003c\/p\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"coc-metric-list\"\u003e\n        \u003cdiv class=\"coc-metric\"\u003e\n          \u003cdiv class=\"coc-metric-label\"\u003eEquity–debt spread\u003c\/div\u003e\n          \u003cdiv class=\"coc-metric-value\" data-coc-result-component-spread\u003e3.00 pp\u003c\/div\u003e\n          \u003cdiv class=\"coc-metric-note\"\u003ePositive means the required equity return exceeds the borrowing rate.\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coc-metric\"\u003e\n          \u003cdiv class=\"coc-metric-label\"\u003eExpected return spread\u003c\/div\u003e\n          \u003cdiv class=\"coc-metric-value\" data-coc-result-return-spread\u003e2.00 pp\u003c\/div\u003e\n          \u003cdiv class=\"coc-metric-note\"\u003eExpected project return less the simple combined rate.\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coc-metric\"\u003e\n          \u003cdiv class=\"coc-metric-label\"\u003eIllustrative annual capital charge\u003c\/div\u003e\n          \u003cdiv class=\"coc-metric-value\" data-coc-result-charge\u003e$130,000.00\u003c\/div\u003e\n          \u003cdiv class=\"coc-metric-note\"\u003eCapital base multiplied by the simple combined rate; use as context, not as a cash interest forecast.\u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"coc-visually-hidden\" aria-live=\"polite\" data-coc-live\u003eCombined cost of capital is 13.00%.\u003c\/div\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\n  \u003csection class=\"coc-section\" aria-labelledby=\"coc-breakdown-heading\"\u003e\n    \u003ch3 id=\"coc-breakdown-heading\"\u003eComponent breakdown\u003c\/h3\u003e\n    \u003cp class=\"coc-section-intro\"\u003eSee which input contributes more percentage points to the combined rate.\u003c\/p\u003e\n    \u003cdiv class=\"coc-breakdown-grid\"\u003e\n      \u003cdiv class=\"coc-component\"\u003e\n        \u003cdiv class=\"coc-component-label\"\u003eDebt component\u003c\/div\u003e\n        \u003cdiv class=\"coc-component-value\" data-coc-breakdown-debt\u003e5.00%\u003c\/div\u003e\n        \u003cdiv class=\"coc-component-detail\" data-coc-breakdown-debt-share\u003e38.46% of the combined rate\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"coc-component coc-component-equity\"\u003e\n        \u003cdiv class=\"coc-component-label\"\u003eEquity component\u003c\/div\u003e\n        \u003cdiv class=\"coc-component-value\" data-coc-breakdown-equity\u003e8.00%\u003c\/div\u003e\n        \u003cdiv class=\"coc-component-detail\" data-coc-breakdown-equity-share\u003e61.54% of the combined rate\u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"coc-section coc-chart-card\" data-coc-chart-card aria-labelledby=\"coc-chart-heading\"\u003e\n    \u003cdiv\u003e\n      \u003ch3 id=\"coc-chart-heading\"\u003eRate contribution chart\u003c\/h3\u003e\n      \u003cp class=\"coc-section-intro\" data-coc-chart-intro\u003eEquity currently contributes the larger share of the 13.00% combined rate.\u003c\/p\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"coc-chart-cluster\" data-coc-chart-cluster\u003e\n      \u003cdiv class=\"coc-chart-visual-wrap\" data-coc-chart-visual-wrap\u003e\n        \u003csvg class=\"coc-chart-visual\" data-coc-chart viewbox=\"0 0 280 280\" role=\"img\" aria-labelledby=\"coc-chart-svg-title coc-chart-svg-desc\"\u003e\n          \u003ctitle id=\"coc-chart-svg-title\"\u003eCost of capital component shares\u003c\/title\u003e\n          \u003cdesc id=\"coc-chart-svg-desc\" data-coc-chart-desc\u003eDebt contributes 5.00 percentage points and equity contributes 8.00 percentage points.\u003c\/desc\u003e\n          \u003cg data-coc-chart-arcs\u003e\u003c\/g\u003e\n          \u003ctext class=\"coc-chart-center-title\" x=\"140\" y=\"132\"\u003eCombined\u003c\/text\u003e\n          \u003ctext class=\"coc-chart-center-value\" x=\"140\" y=\"160\" data-coc-chart-total\u003e13.00%\u003c\/text\u003e\n        \u003c\/svg\u003e\n        \u003cdiv class=\"coc-chart-empty\" data-coc-chart-empty hidden\u003eEnter values above to see the breakdown.\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"coc-chart-legend\" data-coc-chart-legend aria-label=\"Chart legend\"\u003e\u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"coc-chart-table-wrap\" data-coc-chart-table-wrap\u003e\n      \u003ctable class=\"coc-data-table\" aria-label=\"Exact chart data\"\u003e\n        \u003cthead\u003e\n          \u003ctr\u003e\n            \u003cth scope=\"col\"\u003eComponent\u003c\/th\u003e\n            \u003cth class=\"coc-num\" scope=\"col\"\u003eRate\u003c\/th\u003e\n            \u003cth class=\"coc-num\" scope=\"col\"\u003eShare of total\u003c\/th\u003e\n          \u003c\/tr\u003e\n        \u003c\/thead\u003e\n        \u003ctbody data-coc-chart-table-body\u003e\u003c\/tbody\u003e\n      \u003c\/table\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"coc-chart-caption\" data-coc-chart-caption\u003eThe chart represents contribution to the simple sum. It does not apply debt\/equity capital weights or the interest tax shield.\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"coc-section\" data-coc-table-card aria-labelledby=\"coc-scenarios-heading\"\u003e\n    \u003ch3 id=\"coc-scenarios-heading\"\u003eSensitivity scenarios\u003c\/h3\u003e\n    \u003cp class=\"coc-section-intro\"\u003eThese mechanical scenarios show how one-percentage-point changes flow through the additive formula.\u003c\/p\u003e\n    \u003cdiv class=\"coc-table-overflow\" data-coc-table-overflow\u003e\n      \u003ctable class=\"coc-data-table\" aria-describedby=\"coc-scenarios-note\"\u003e\n        \u003cthead\u003e\n          \u003ctr\u003e\n            \u003cth scope=\"col\"\u003eScenario\u003c\/th\u003e\n            \u003cth class=\"coc-num\" scope=\"col\"\u003eDebt rate\u003c\/th\u003e\n            \u003cth class=\"coc-num\" scope=\"col\"\u003eEquity rate\u003c\/th\u003e\n            \u003cth class=\"coc-num\" scope=\"col\"\u003eCombined rate\u003c\/th\u003e\n            \u003cth class=\"coc-num\" scope=\"col\"\u003eChange\u003c\/th\u003e\n          \u003c\/tr\u003e\n        \u003c\/thead\u003e\n        \u003ctbody data-coc-scenario-body\u003e\u003c\/tbody\u003e\n      \u003c\/table\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"coc-table-note\" id=\"coc-scenarios-note\" data-coc-table-note\u003eScenario rows are illustrative arithmetic checks, not forecasts. In practice, debt and equity costs can move together because both respond to market and company risk.\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003cdetails class=\"coc-advanced\" data-coc-advanced\u003e\n    \u003csummary\u003eOptional decision context\u003c\/summary\u003e\n    \u003cdiv class=\"coc-advanced-content\"\u003e\n      \u003cp class=\"coc-advanced-copy\"\u003eThese values do not change the combined rate. They translate it into an illustrative dollar amount and compare it with a project return.\u003c\/p\u003e\n      \u003cdiv class=\"coc-field-grid\"\u003e\n        \u003cdiv class=\"coc-field\"\u003e\n          \u003clabel class=\"coc-label\" for=\"coc-capital-base\"\u003eIllustrative capital base\u003c\/label\u003e\n          \u003cinput class=\"coc-input\" id=\"coc-capital-base\" data-coc-input=\"capitalBase\" type=\"text\" inputmode=\"decimal\" value=\"$1,000,000.00\" aria-describedby=\"coc-capital-help coc-capital-error\"\u003e\n          \u003cdiv class=\"coc-helper\" id=\"coc-capital-help\"\u003eOptional dollar base used only for the annual capital-charge illustration.\u003c\/div\u003e\n          \u003cdiv class=\"coc-error\" id=\"coc-capital-error\" data-coc-error=\"capitalBase\" aria-live=\"polite\"\u003e\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"coc-field\"\u003e\n          \u003clabel class=\"coc-label\" for=\"coc-expected-return\"\u003eExpected project return\u003c\/label\u003e\n          \u003cinput class=\"coc-input\" id=\"coc-expected-return\" data-coc-input=\"expectedReturn\" type=\"text\" inputmode=\"decimal\" value=\"15.00%\" aria-describedby=\"coc-return-help coc-return-error\"\u003e\n          \u003cdiv class=\"coc-helper\" id=\"coc-return-help\"\u003eOptional annual return estimate used to calculate the return spread.\u003c\/div\u003e\n          \u003cdiv class=\"coc-error\" id=\"coc-return-error\" data-coc-error=\"expectedReturn\" aria-live=\"polite\"\u003e\u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n  \u003c\/details\u003e\n\n  \u003csection class=\"coc-education\" aria-labelledby=\"coc-education-heading\"\u003e\n    \u003ch2 id=\"coc-education-heading\"\u003eHow to use and interpret the cost of capital calculator\u003c\/h2\u003e\n    \u003cdiv class=\"coc-education-grid\"\u003e\n      \u003cdiv\u003e\n        \u003ch3\u003eWhat this calculator estimates\u003c\/h3\u003e\n        \u003cp\u003eThis tool estimates a simple combined cost of capital by adding the annual cost of debt to the annual cost of equity. The result is a compact benchmark for understanding how expensive the two financing sources are when viewed together. It is especially useful for instruction, first-pass comparisons, and quick sensitivity checks.\u003c\/p\u003e\n        \u003cp\u003eThe simple sum is not the same as weighted average cost of capital, or WACC. A standard WACC calculation weights debt and equity by their shares in the capital structure and usually adjusts debt for the tax deductibility of interest. For valuation and formal investment decisions, capital weights matter. The \u003ca href=\"https:\/\/pages.stern.nyu.edu\/~adamodar\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eNYU Stern valuation resources\u003c\/a\u003e provide broader context on estimating discount rates and capital costs.\u003c\/p\u003e\n\n        \u003ch3\u003eInput guide\u003c\/h3\u003e\n        \u003cp\u003e\u003cstrong\u003eCost of debt\u003c\/strong\u003e is the effective annual rate the company pays or would currently pay to borrow. Enter a percentage such as 5%. A higher value raises the combined rate one-for-one. Use a current borrowing yield or an effective rate rather than a loan’s nominal coupon when fees or discounts are material. Avoid entering a decimal fraction such as 0.05 when you mean 5%; the field expects percentage points.\u003c\/p\u003e\n        \u003cp\u003e\u003cstrong\u003eCost of equity\u003c\/strong\u003e is the annual return shareholders require for accepting the business risk of owning equity. It can be estimated with a model such as CAPM, comparable-company evidence, or an investor hurdle rate. A higher equity cost also raises the combined result one-for-one. Equity cost is often above debt cost because equity holders rank behind lenders and absorb more downside risk.\u003c\/p\u003e\n        \u003cp\u003e\u003cstrong\u003eIllustrative capital base\u003c\/strong\u003e is optional. It converts the combined percentage into a dollar amount by multiplying the base by the rate. This is not a prediction of accounting interest expense or shareholder distributions. It is a scale illustration that helps users compare, for example, a 13% benchmark on $1 million versus the same rate on $10 million.\u003c\/p\u003e\n        \u003cp\u003e\u003cstrong\u003eExpected project return\u003c\/strong\u003e is also optional. Enter the annual return you expect from a project or investment. The calculator subtracts the combined rate from this return. A positive spread means the expected return exceeds the simple benchmark; a negative spread means it falls short. Forecast uncertainty should be evaluated separately.\u003c\/p\u003e\n      \u003c\/div\u003e\n\n      \u003cdiv\u003e\n        \u003ch3\u003eFormula and outputs\u003c\/h3\u003e\n        \u003cdiv class=\"coc-formula\"\u003eSimple combined cost of capital = cost of debt + cost of equity\u003c\/div\u003e\n        \u003cp\u003e\u003cstrong\u003eSimple combined cost of capital\u003c\/strong\u003e is the primary output. A 5% debt cost and 8% equity cost produce 13%. High values indicate that the stated funding sources are expensive in aggregate; low values indicate less demanding stated rates. Zero means both inputs are zero. Because the formula is additive, a one-percentage-point increase in either input always raises the result by one percentage point.\u003c\/p\u003e\n        \u003cp\u003e\u003cstrong\u003eEquity–debt spread\u003c\/strong\u003e equals the cost of equity minus the cost of debt. A positive spread is common and shows the extra return required by equity investors relative to lenders. A negative spread can occur, but it deserves scrutiny because it may reflect unusual debt distress, an understated equity hurdle, or mismatched measurement dates.\u003c\/p\u003e\n        \u003cp\u003e\u003cstrong\u003eExpected return spread\u003c\/strong\u003e equals expected project return minus the combined rate. Treat it as a directional comparison rather than an approval rule. A small positive spread may not compensate for forecast error, execution risk, or differences between project risk and company-wide financing risk.\u003c\/p\u003e\n        \u003cp\u003e\u003cstrong\u003eIllustrative annual capital charge\u003c\/strong\u003e multiplies the capital base by the combined rate. It expresses the rate in dollars but does not claim that the company will literally pay that amount. Actual cash financing costs depend on principal balances, contractual interest, dividends, issuance fees, taxes, and timing.\u003c\/p\u003e\n\n        \u003ch3\u003eReading the chart and scenario table\u003c\/h3\u003e\n        \u003cp\u003eThe donut chart divides the combined rate into debt and equity contributions. The legend and exact-data table use the same underlying values, so the percentage shares add to 100% whenever at least one input is positive. A larger segment means that input contributes more percentage points to the total; it does not mean the company uses more of that financing source.\u003c\/p\u003e\n        \u003cp\u003eThe sensitivity table changes each rate by one percentage point and recalculates the sum. It is useful for validating the arithmetic and seeing direct exposure. Real market movements may be correlated. Treasury yields, credit spreads, beta, risk premiums, and company-specific risk can all change at once. The \u003ca href=\"https:\/\/home.treasury.gov\/resource-center\/data-chart-center\/interest-rates\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eU.S. Treasury rate data\u003c\/a\u003e and the \u003ca href=\"https:\/\/www.federalreserve.gov\/releases\/h15\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eFederal Reserve H.15 release\u003c\/a\u003e are examples of public reference points for market interest rates.\u003c\/p\u003e\n      \u003c\/div\u003e\n\n      \u003cdiv\u003e\n        \u003ch3\u003eWhen a weighted model is more appropriate\u003c\/h3\u003e\n        \u003cp\u003eUse WACC when the objective is to estimate a company-wide discount rate for enterprise valuation or to judge projects with risk similar to the existing business. WACC normally applies market-value capital weights and an after-tax debt cost. The simple calculator here deliberately does not infer those values because it only asks for two rates. Adding weights without reliable debt and equity values would create false precision.\u003c\/p\u003e\n        \u003cp\u003eFor a project with materially different risk, a company-wide cost of capital may still be inappropriate. A new venture, foreign market, regulated asset, or distressed acquisition may require a project-specific discount rate. The \u003ca href=\"https:\/\/www.investopedia.com\/terms\/c\/costofcapital.asp\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eInvestopedia overview of cost of capital\u003c\/a\u003e offers a useful conceptual introduction, but professional valuation work should document the selected method and assumptions.\u003c\/p\u003e\n      \u003c\/div\u003e\n\n      \u003cdiv\u003e\n        \u003ch3\u003eCommon mistakes and practical checks\u003c\/h3\u003e\n        \u003cul\u003e\n          \u003cli\u003eMixing percentages and decimals, such as entering 0.08 when the intended input is 8%.\u003c\/li\u003e\n          \u003cli\u003eUsing a historical debt coupon when the relevant question concerns the current refinancing cost.\u003c\/li\u003e\n          \u003cli\u003eComparing a nominal financing rate with a real, inflation-adjusted project return.\u003c\/li\u003e\n          \u003cli\u003eTreating the simple sum as WACC or assuming the chart shows capital-structure weights.\u003c\/li\u003e\n          \u003cli\u003eUsing an expected return from a project with a different risk profile without an adjustment.\u003c\/li\u003e\n          \u003cli\u003eIgnoring taxes, issuance fees, floating-rate exposure, refinancing risk, or preferred equity.\u003c\/li\u003e\n        \u003c\/ul\u003e\n        \u003cp\u003eCheck that all rates use the same annual convention and observation date. Review whether the equity estimate reflects current market risk and whether the debt estimate reflects the company’s actual credit quality. Run downside scenarios rather than relying on a single point estimate. A project that only barely exceeds the benchmark may not remain attractive after delays, cost overruns, or lower cash flows.\u003c\/p\u003e\n        \u003cp\u003eThis calculator is educational and does not provide personalized financial, tax, legal, or investment advice. Use a fuller capital-structure model and qualified professional judgment for consequential decisions.\u003c\/p\u003e\n      \u003c\/div\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49909484355827,"sku":"cost-of-capital","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/cost-of-capital.webp?v=1783935440","url":"https:\/\/financialmodelslab.com\/products\/cost-of-capital","provider":"Financial Models Lab","version":"1.0","type":"link"}