Calculators

CAPM cost of equity API

Capital Asset Pricing Model cost of equity Re = Rf + beta*(Rm - Rf): plug in the risk-free rate, beta, and either the market return or equity risk premium to get the discount rate for equity, with a per-component breakdown. Discounting math LLMs get wrong; deterministic and auditable. Answers 'what is the cost of equity with beta 1.2','CAPM required return','discount rate for a stock with beta X'.

Price$0.01per request

MethodPOST

Route/v1/calc/val-capm

StatusLive

MIME typeapplication/json

Rate limit120/minute

CacheNo cache

calcvaluationcapmcost-of-equitybetadiscount-ratefinanceequity

API URLhttps://x402.hexl.dev/v1/calc/val-capm

Integration docs

Example request

{
  "riskFreeRate": 0.03,
  "beta": 1.2,
  "equityRiskPremium": 0.05
}

Example response

{
  "costOfEquity": 0.09,
  "costOfEquityPercent": 9,
  "formula": "Re = Rf + beta * (Rm - Rf)",
  "breakdown": {
    "riskFreeRate": 0.03,
    "beta": 1.2,
    "equityRiskPremium": 0.05,
    "betaTimesERP": 0.06
  }
}

Input schema

{
  "type": "object",
  "required": [
    "riskFreeRate",
    "beta"
  ],
  "properties": {
    "riskFreeRate": {
      "type": "number",
      "description": "Risk-free rate as a decimal (e.g. 0.03 = 3%)",
      "examples": [
        0.03
      ]
    },
    "beta": {
      "type": "number",
      "examples": [
        1.2
      ]
    },
    "marketReturn": {
      "type": "number",
      "description": "Expected market return as a decimal",
      "examples": [
        0.08
      ]
    },
    "equityRiskPremium": {
      "type": "number",
      "description": "Market risk premium as a decimal; supply instead of marketReturn",
      "examples": [
        0.05
      ]
    }
  }
}

Output schema

{
  "type": "object",
  "additionalProperties": true
}