# Levered Free Cash Flow Calculator

URL: https://speedycalculator.com/calculators/finance/levered-free-cash-flow/
Last updated: 2026-10-25

> The levered free cash flow calculator works out the cash left for shareholders after operating expenses, capital expenditure, working capital changes and mandatory debt payments.

## Inputs

- EBITDA
- Increase in net working capital
- Capital expenditure
- Mandatory debt payments
- Taxes paid

## Results

- Levered free cash flow

## Formula

```
Levered FCF = EBITDA − change in working capital − capex − mandatory debt payments (interest + principal)
```

## Explanation

Levered free cash flow shows what equity holders could receive after the company meets its debt obligations. A company with high debt can have strong unlevered but weak levered FCF.

### How to use the Levered Free Cash Flow Calculator

- **EBITDA**
- **Increase in net working capital**
- **Capital expenditure**
- **Mandatory debt payments**
- **Taxes paid**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter EBITDA, the change in working capital, capital expenditure and mandatory debt payments.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterEBITDAAmount in your currencyIncrease in net working capitalAmount in your currencyCapital expenditureAmount in your currencyMandatory debt paymentsAmount in your currencyTaxes paidAmount in your currency

### Example values

How the main result changes when **EBITDA** changes and everything else stays at the example values above:

EBITDALevered free cash flow400,000-170,000600,00030,000800,000230,0001,000,000430,0001,200,000630,0001,600,0001,030,000

## Worked example

Inputs — EBITDA: $800,000; Increase in net working capital: $50,000; Capital expenditure: $250,000; Mandatory debt payments: $180,000; Taxes paid: $90,000.

Results — **Levered free cash flow = $230,000.00**.

## FAQ

**What is levered free cash flow?**
Cash flow after all obligations including debt payments.

**How is it different from unlevered FCF?**
Unlevered FCF is before interest and debt repayments.

**Can levered FCF be negative?**
Yes – e.g. during heavy investment or high debt service.

**What formula does the Levered Free Cash Flow Calculator use?**
Levered FCF = EBITDA − change in working capital − capex − mandatory debt payments (interest + principal).


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)