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After-tax Cost of Debt Calculator
Defination / Uses
The cost of debt as the request interest rate, or yield to maturity (YTM), that the company will have to pay if it were to raise new debt from the request.
Still, when this conception is applied in real- life, where duty needs to be considered for, the after- duty cost of debt is more generally used. The main reason for this is because the interest paid on debt is frequently duty-deductible. Using these 2 pieces of information, we can estimate the company's ahead- duty cost of debt by comparing its debt to other intimately traded bonds with a analogous credit conditions.