Cost of Debt Calculator

Cost of debt is nothing but the effective rate which a firm pays on current debts of the firm. The cost of debt is calculated both before and after the tax returns. 

The cost of debt is calculated with the help of this below formula:

Cost of Debt Formula

Rd = Debt interest Rate
tc = Total tax rate

Let us learn cost of debt better with the following example:

Example: Company CDE issues debt interest rate of 5%. The total tax rate is 35%. Calculate CDE's cost of debt.
Debt Interest Rate = 5%
Total Tax Rate = 35%

We know the formula to calculate cost of debt = Rd(1 - tc)

Let us input the values onto the formula = 5(1 - 0.35)

= 3.25% 

Hence, the cost of debt for the company CDE = 3.25%

Use our below online cost of debt calculator by inserting the debt interest rate and total tax rate onto the input boxes and then click calculate button to get the output.

Debt Interest Rate (Rd): %
Total Tax Rate (tc): %
Cost of Debt: %

Latest Calculator Release

Average Acceleration Calculator

Average acceleration is the object's change in speed for a specific given time period. ...

Free Fall Calculator

When an object falls into the ground due to planet's own gravitational force is known a...

Torque Calculator

Torque is nothing but a rotational force. In other words, the amount of force applied t...

Average Force Calculator

Average force can be explained as the amount of force exerted by the body moving at giv...

Angular Displacement Calculator

Angular displacement is the angle at which an object moves on a circular path. It is de...