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Risk-Adjusted Discount Rate from Beta and Market Premium Calculator

Project discount rate = WACC adjusted for systematic risk.

Estimates a risk-adjusted discount rate for a project: RADR = Rf + β_project · (Rm − Rf). Compares to the company WACC to assess if the project has more or less systematic risk.

Marcus Laurent By Marcus Laurent
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

RADR = Rf + β_project · ERP

In depth

Estimates a risk-adjusted discount rate for a project: RADR = Rf + β_project · (Rm − Rf). Compares to the company WACC to assess if the project has more or less systematic risk.