Cost of Equity (CAPM)
Calculate Cost of Equity (CAPM) instantly with the exact formula and a worked example. Free online calculator — no signup.
Cost of Equity (CAPM)
r_f
β
Mkt risk premium
r_E
0.096
r_E
9,6%
More about: Cost of Equity (CAPM)
What it calculates
The “Cost of Equity (CAPM)” calculator computes r_E from 3 parameters: r_f, β, mkt risk premium.
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters r_f = 0.03, β = 1.1, Mkt risk premium = 0.06 the result is 0.096 (r_E = r_f + β·(r_m − r_f)).
How to use
- Enter the parameter values — every field above is adjustable with a slider.
- The result and related metrics are calculated automatically as you type.
- Use the additional metrics shown (if any) where needed.
- Copy the result or bookmark the page.