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Cost of capital

Calculates what the interest rate will be and is used in investment calculations.

Cost of capital

Input Result
Real profit requirement r= % %
Inflation i= % %
Administration mark-up adm= % %
Risk mark-up risk= % %
Nominal interest rate n= % %

Explanations

Profit requirements

What profit requirements you have on investment.

Inflation

Inflation is a measure of how much the value of money decreases every year.

Administration mark-up

A markup to cover the administrative costs.

Risk mark-up

A measure of how high returns you want, depending on how much risk there is in the project.

Nominal cost of capital

The total rate, ie including the real interest rate and inflation.

Formler

Cost of capital: cost of capital