About CostOfEquityCalculator.com

CostOfEquityCalculator.com is a free calculator that works out a company's cost of equity with CAPM, the dividend growth model and the build-up method, and shows each step of the math. People land here with a model half built: a discounted cash flow in a spreadsheet, a homework problem, a pitch for a project that needs a hurdle rate. The calculator gives the number in a few seconds and lays out every step, so you can copy the logic into your own work.

What is on the site

Next to the calculator there is a set of guides on CAPM, the dividend growth model, private companies, beta and WACC, short answers to common questions, and a glossary of the corporate finance terms that come up along the way.

Independence

The site is not owned by a brokerage, a fund, a valuation firm or a financial advisor, and it does not sell leads. If that ever changes, it will be disclosed on this page and on any page where it applies.

How the numbers are produced

Every figure comes from one small calculation engine, and the formulas are written out on the methodology page so you can check them by hand. Published figures, such as equity risk premium estimates, link to the source they come from.

Corrections and contact

Spotted an error, or a method we should add? Email hello@costofequitycalculator.com.

Not advice

The calculator and guides are educational. They are not investment, valuation or financial advice. A cost of equity is an estimate, and two careful analysts can reach different answers for the same company. Check your inputs and assumptions before relying on a result.