Cost Of Equity Calculator
Result
Cost Of Equity Calculator — free online calculator.
Formula
- Cost Of Equity Calculator calculates its result from Risk-Free Rate (%), Beta, Expected Market Return (%). It uses the formula Cost of Equity = risk_free_rate + Beta * (Market Return - risk_free_rate). Change any input to recalculate the result instantly.
- The main inputs are Risk-Free Rate, Beta, Expected Market Return. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Cost Of Equity
- Risk-Free Rate: 6 %
- Beta: 1.15
- Expected Market Return: 13 %
Using Risk-Free Rate (%) = 6, Beta = 1.15, Expected Market Return (%) = 13, the calculated result is 14.05.
Sample result: Calculating…
Frequently asked questions
What does the Cost Of Equity calculate?
Cost Of Equity Calculator — free online calculator.
Which values should I enter?
Enter Risk-Free Rate, Beta, Expected Market Return using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Cost of Equity = risk_free_rate + Beta * (Market Return - risk_free_rate).
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.