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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.

Flotation Costs: Explained, Calculation, and Practical Examples Thumbnail

Flotation Costs: Explained, Calculation, and Practical Examples

Silas Bamigbola

What is the Twenty Percent Rule? Definition, Application, and Examples Thumbnail

What is the Twenty Percent Rule? Definition, Application, and Examples

Alessandra Nicole

Implicit Rental Rates: Definition, Analysis, and Real-World Application Thumbnail

Implicit Rental Rates: Definition, Analysis, and Real-World Application

Alessandra Nicole

Noninterest Expenses: Definition, Impact, Strategies, and Examples Thumbnail

Noninterest Expenses: Definition, Impact, Strategies, and Examples

SuperMoney Team

Understanding Security Upgrades: Definition, Impact, and Examples Thumbnail

Understanding Security Upgrades: Definition, Impact, and Examples

Alessandra Nicole

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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.