# What is and how to Calculate the WACC Discount rate with Formulas in Excel?

The WACC calculation using formulas in Excel it’s extraordinary. No matter how many solved WACC exercises you can get, today at LookHowToShow we explain it better.

Here we will explain how calculate cost of debt in Excel quickly, as well as how to calculate the discount rate of a project, to do this, follow the steps.

In an excel sheet, leave box 1A empty and in that row write from 1B: ‘Value’, ‘participation,’ cost ‘and’ weighted average ‘. Then in column A, starting from row 2, write ‘debt’, then ‘own resources’, ‘total’ and leave an empty box.

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For the other box, write ‘TIO’, then ‘interest rate’, ‘taxes’ and then in A9 the ‘cost of debt’. Fill in the corresponding data.

In box C3, we put = B3 / B4, and in box C2 enter = B2 / B4, always remembering that these results so far are percentages. Later, for the cost of debt, put in B9, = B7 * (1-B8)

## What is the WACC for?

All this type of tutorials, should more than ever make you inquire in the steps and procedures for keeping accounting books.

It is also important to know that WACC means, by its acronym in English: Weighted Average Cost of Capital, while in Spanish the translation has been: El Weighted Average Cost of Capital.

And although it is not a direct way of save us moneyRemember very well to inquire about other options to do so, such as getting coupons and similar offers.

Continuing with the explanation before started, then in D2 you must enter = B9 and D3 that is equal to B6. Then for the weighted average you must place = C2 * D2 and drag said result to the lower box, to finally assign us a total.

This type of functions integrated in Excel, have helped many people, whether they are ordinary individuals, even people with large companies, administrators and accountants in general. That is why now more than ever resides the importance of learning to use these programs.

## What is Microsoft Excel and what is it used for?

Microsoft Excel is a program available for Windows, Mac OS, Android and iOS, it has spreadsheets to carry out any operation you need. Published in 1985, it is aimed especially at take the accounting of your business.

However, Excel is not only that, over the years it has been adding many functions to solve many problems that may arise in our day to day.

Among its many possibilities, it allows the weighted average cost of capital calculation, or WACC for its acronym in English. An action that would normally take several minutes physically, but, if you have the data in order, a few seconds in Excel will suffice.

Microsoft Excel has the possibility of working with a programming language for the design of macros, these macros are extra functions that can be designed by users depending on the corresponding needs.

This language is the Visual basic, which can also be useful for other programs within the same «Microsoft» family.

## Why use Microsoft Excel to calculate the WACC discount?

With excel, you can perform basic activities such as creating forms to enter data, in the same way, the automation offered by the program it is worthy to become one of the best in the area.

The use of Microsft Excel, thanks to the digital environment in which it works, the versatility it offers is unmatched, so if at any time we must make a change in a formula or value, this in turn change all accounting quickly.

Likewise, his compatibility with different operating systems, allows us to synchronize our work when we require it, we can even download the accounting books and analyze them on our mobile without having an internet connection.

On the other hand, although with fewer users, there are Google spreadsheets. This «application» allows users to do a large number of activities.

Like for example, work like wacc calculator, as long as you follow the different formulas of the finance wacc to the letter.

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