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Cost of Capital

The cost of capital refers to the cost of using money to finance a business or other venture. It includes the interest that must be paid on loans and the return that must be earned on investment to make it worthwhile for investors to provide the capital. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to cost of capital.

Value engineering: Definition, Steps, and Examples Thumbnail

Value engineering: Definition, Steps, and Examples

SuperMoney Team

Cost of Capital: What It Is and How to Calculate WACC Thumbnail

Cost of Capital: What It Is and How to Calculate WACC

Silas Bamigbola

Equivalent Annual Cost (EAC): Definition, How It Works, and Examples Thumbnail

Equivalent Annual Cost (EAC): Definition, How It Works, and Examples

SuperMoney Team

Cost of equity: Definition, Formula, and Practical Examples Thumbnail

Cost of equity: Definition, Formula, and Practical Examples

Silas Bamigbola

Capital Structure: Definition, Types, Importance, and Examples Thumbnail

Capital Structure: Definition, Types, Importance, and Examples

Silas Bamigbola

Departmental Overhead Rates: Definition, Examples, and Efficiency Insights Thumbnail

Departmental Overhead Rates: Definition, Examples, and Efficiency Insights

Silas Bamigbola

Hamada Equation: Calculation and Real-world Applications Thumbnail

Hamada Equation: Calculation and Real-world Applications

SuperMoney Team

Fixed-for-fixed swaps explained: How it works, types, and examples Thumbnail

Fixed-for-fixed swaps explained: How it works, types, and examples

SuperMoney Team

Debt Limitation: Definition, Types, and Role Thumbnail

Debt Limitation: Definition, Types, and Role

Dan Agbo

Weighted Average Cost of Equity: Definition, Calculation, and Real-world Applications Thumbnail

Weighted Average Cost of Equity: Definition, Calculation, and Real-world Applications

SuperMoney Team

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Learn About Cost of Capital

Thumbnail for Blog Article: Home Equity or Personal Savings for Business: Which Is the Smarter Risk?

Home Equity or Personal Savings for Business: Which Is the Smarter Risk?

Andrew Latham

Thumbnail for Blog Article: LendKey Student Loan Refinancing Increases Variable Rates to Range from 4.76% to 7.86% (March 2023)

LendKey Student Loan Refinancing Increases Variable Rates to Range from 4.76% to 7.86% (March 2023)

SuperMoney Team

About Cost of Capital

The cost of capital refers to the cost of using money to finance a business or other venture. It includes the interest that must be paid on loans and the return that must be earned on investment to make it worthwhile for investors to provide the capital.