Levered Free Cash Flow Calculator

Your details

EBITDA method is common in screening and valuation. Net income method mirrors free-cash-flow-to-equity (FCFE) as used in equity-oriented DCF models.
Earnings before interest, taxes, depreciation, and amortization.
USD
Cash interest paid on debt during the period. Levered free cash flow is measured after interest; the net income method needs no separate entry because interest is already deducted inside net income.
USD
Cash taxes paid during the period (positive number).
USD
Total capital spending on property, plant, equipment, and intangibles.
USD
Change in (current assets minus current liabilities). A positive value means more cash is tied up in working capital (a use of cash). Enter a negative number if NWC shrank (a source of cash).
USD
Scheduled (mandatory) principal repayments. Exclude voluntary prepayments and new borrowings if using the EBITDA method.
USD
Levered Free Cash FlowPositive LFCF
9,000,000USD

Cash available to equity shareholders after all obligations

Operating cash (before CapEx and debt)25,000,000USD
CapEx8,000,000USD
Working-capital increase3,000,000USD
Net cash to lenders5,000,000USD
LFCF conversion rate36%
Operating cash25,000,000
CapEx8,000,000
NWC increase3,000,000
Net cash to lenders5,000,000
LFCF (result)9,000,000

Levered free cash flow is +9M USD - shareholders have cash to work with.

  • The company generates 9M USD in free cash flow available to equity holders after all operating costs, reinvestment, and debt obligations.
  • The LFCF conversion rate is 36.0%, meaning the company converts that share of its operating cash base into equity-distributable free cash flow.
  • CapEx (8M USD) and net cash to lenders (5M USD) are the largest cash drains after operating costs.

Next stepPositive LFCF can be returned to equity holders via dividends or buybacks, reinvested for growth, or used to reduce leverage. Compare LFCF across years to assess trend quality.

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