Cost of Equity Calculator
Calculate cost of equity using CAPM, Dividend Discount Model, and Bond Yield plus Risk Premium methods.
Important Financial Disclaimer
This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.
For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.
Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.
Not a substitute for professional financial advice
Calculation Method
CAPM Inputs
DDM Inputs
Risk Premium Method
Cost of Equity
11.20%
Moderate - Average risk
All Methods Comparison
Rf + Beta × (Rm - Rf)
D1/P0 + g
Rf + Risk Premium
CAPM Breakdown
CAPM Formula: Re = Rf + β × (Rm - Rf) = 4.0% + 1.20 × 6.0% = 11.20%
Help us improve!
How would you rate the Cost of Equity Calculator?