# Net Debt Calculator

URL: https://speedycalculator.com/calculators/finance/net-debt/
Last updated: 2026-10-25

> The net debt calculator works out a company's net debt – short-term and long-term debt minus cash and cash equivalents – and the net debt to EBITDA ratio used by lenders and analysts.

## Inputs

- Short-term debt
- Long-term debt
- Cash and cash equivalents
- EBITDA

## Results

- Net debt
- Net debt to EBITDA

## Formula

```
Net debt = short-term debt + long-term debt − cash and cash equivalents
Net debt to EBITDA = net debt ÷ EBITDA
```

## Explanation

Net debt shows how much debt would remain if the company used all its cash to repay it. A net debt/EBITDA ratio above 3–4 is often considered high; negative net debt means a net cash position.

### How to use the Net Debt Calculator

- **Short-term debt**
- **Long-term debt**
- **Cash and cash equivalents**
- **EBITDA**

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

### How it works

Enter short-term debt, long-term debt, cash and cash equivalents, and EBITDA.

### 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 enterShort-term debtAmount in your currencyLong-term debtAmount in your currencyCash and cash equivalentsAmount in your currencyEBITDAAmount in your currency

### What each result means

- **Net debt** = [Short-term debt] + [Long-term debt] - [Cash and cash equivalents]
- **Net debt to EBITDA** = [Net debt]÷[EBITDA]

### Example values

How the main result changes when **Short-term debt** changes and everything else stays at the example values above:

Short-term debtNet debt100,0001,200,000150,0001,250,000200,0001,300,000250,0001,350,000300,0001,400,000400,0001,500,000

## Worked example

Inputs — Short-term debt: $200,000; Long-term debt: $1,500,000; Cash and cash equivalents: $400,000; EBITDA: $600,000.

Results — **Net debt = $1,300,000.00**; Net debt to EBITDA = 2.17.

## FAQ

**What is net debt?**
Total debt minus cash and cash equivalents.

**What is a good net debt to EBITDA ratio?**
Below about 3 for most industries.

**What does negative net debt mean?**
The company has more cash than debt.

**What formula does the Net Debt Calculator use?**
Net debt = short-term debt + long-term debt − cash and cash equivalents.


## Sources

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