CAPM Calculator

Enter your capital structure and cost inputs. Results update instantly.

Capital Structure

Equity Value ($)Total market value of the company's equity — shares outstanding × share price. For private companies, use your estimated equity valuation.

Debt Value ($)Total market value of outstanding debt — bonds, loans, and other borrowings. Use book value if market value is unavailable.

Cost of Debt (%)The effective annual interest rate the company pays on its debt. Use the weighted average rate across all loans and bonds.

Corporate Tax Rate (%)The marginal corporate income tax rate. Used to calculate the after-tax cost of debt (interest is tax-deductible). The US federal rate is 21%.

Cost of Equity MethodHow to calculate the return equity investors require. CAPM is the industry standard formula. Use manual entry if you already have a cost of equity figure.

CAPM (recommended)Capital Asset Pricing Model: Cost of Equity = Risk-Free Rate + Beta × (Market Return − Risk-Free Rate)Enter manually

Risk-Free Rate (%)The return on a risk-free investment — typically the yield on a 10-year US Treasury bond. Currently around 4–4.5%.

BetaMeasures the stock's volatility relative to the market. Beta = 1 moves with the market; > 1 is more volatile; < 1 is less volatile. Use an industry average beta for private companies.

Expected Market Return (%)The expected annual return of the broad stock market (e.g. S&P 500). The long-term historical average is approximately 10%.

Company / Project Name (optional, for report)

DISCLAIMER: Results are illustrative only and do not constitute investment advice. Always consult a qualified financial professional before making capital allocation decisions.