Levered Free Cash Flow Calculator

Written by Great Medico

Updated September 25, 2026 •3 min read

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If you are comparing alternatives, the fastest way to stay grounded is to make the assumptions explicit. Levered Free Cash Flow Calculator estimates free cash flow from operating profit, tax, depreciation/amortization, capital expenditures, working-capital investment, and financing adjustments shown and lets you change those inputs one at a time.

What this calculator does

Levered Free Cash Flow Calculator estimates free cash flow from operating profit, tax, depreciation/amortization, capital expenditures, working-capital investment, and financing adjustments shown. The visible form contains EBIT, Tax rate, Depreciation & amortization, Capital expenditures, Increase in net working capital, Net borrowing, Interest expense. These are the inputs that define this calculator’s scope. If a value, rule, or adjustment is not represented by a working field, it should not be assumed to be included in the result.

How to use it

Enter EBIT, Tax rate, Depreciation & amortization, Capital expenditures, Increase in net working capital, then complete the remaining displayed fields: Net borrowing, Interest expense. Enter percentage or rate fields on the scale shown by the form rather than converting them to decimals yourself. Keep monetary inputs in the same currency, or use the currency selector when one is provided. Before calculating, recheck EBIT and the other values that materially affect the result. For a clean comparison, hold the other inputs constant while changing one assumption at a time so you can see what is driving the result.

How the calculation works

The current levered/FCFE path = EBIT × (1 − tax rate) + D&A − capex − increase in working capital + net borrowing − after-tax interest expense. This is the calculation method that should anchor any manual check of the output. If a displayed field does not affect the current calculation, that limitation is stated below rather than silently treating the field as part of the formula.

Example

With the displayed example values (EBIT = 250,000, Tax rate = 25, Depreciation & amortization = 50,000, and Capital expenditures = 80,000) and the remaining defaults unchanged, the current calculator returns $133,750.00 for free cash flow to equity estimate. Replacing those defaults with your own values recalculates the same relationship; change one input at a time if you want to see which assumption is driving the difference.

How to interpret the result

Positive free cash flow means the modeled operations generated cash after the specified reinvestment needs. FCFF is capital-structure neutral; FCFE/levered cash flow is closer to cash available to equity after financing effects. Compare results produced from the same definitions and time period. A mathematically larger or smaller number is not automatically better unless the financial context makes that direction meaningful.

Limitations and notes

These are simplified valuation cash flows. Noncash charges, leases, acquisitions, asset sales, minority interests, tax timing, debt issuance/repayment, and working-capital definitions can require adjustments. Where the calculator depends on estimates, rates, accounting classifications, or future behavior, test more than one plausible scenario before making a decision.