basic

Cost of Equity from CAPM Inputs Calculator

r_e = R_f + β(R_m − R_f) — required return on equity.

Calculates the cost of equity using the Capital Asset Pricing Model: r_e = R_f + β × (R_m − R_f), where R_f is the risk-free rate, β is the stock beta, and R_m is the expected market return.

Dr. Helena Ortiz By Dr. Helena Ortiz
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

r_e = R_f + β · (R_m − R_f)

In depth

Calculates the cost of equity using the Capital Asset Pricing Model: r_e = R_f + β × (R_m − R_f), where R_f is the risk-free rate, β is the stock beta, and R_m is the expected market return.