💳 Levered Free Cash Flow Calculator
Calculate Levered Free Cash Flow
Principal payments on debt (optional, default 0)
How to Use This Calculator
Enter Operating Cash Flow
Input the operating cash flow from the cash flow statement - cash flow from operating activities.
Enter Capital Expenditures
Enter the capital expenditures (CapEx) - cash spent on fixed assets. CapEx is typically a negative number in cash flow statements, but enter it as a positive value here.
Enter Debt Repayment (Optional)
Optionally enter debt repayment - principal payments on debt. If omitted, defaults to 0.
Review Levered FCF
See the levered free cash flow - the cash available to equity holders after all expenses, investments, and debt obligations. Levered FCF accounts for debt financing and is used for equity analysis.
Formula
Levered FCF = Operating Cash Flow - Capital Expenditures - Debt Repayment
Example Calculation:
If operating cash flow $500,000, capital expenditures $100,000, debt repayment $50,000:
• Levered FCF = $500,000 - $100,000 - $50,000 = $350,000
• This is the cash available to equity holders after debt obligations
About Levered Free Cash Flow Calculator
A levered free cash flow calculator helps you calculate the cash available to equity holders after all expenses, investments, and debt obligations. Levered FCF = Operating Cash Flow - Capital Expenditures - Debt Repayment. Levered free cash flow accounts for debt financing and represents the cash available to equity holders after servicing debt. It's similar to FCFE (Free Cash Flow to Equity) and is used for equity valuation and analysis. Levered FCF shows the cash that can be distributed to shareholders as dividends or used for share buybacks.
When to Use This Calculator
- Equity Analysis: Calculate levered FCF for equity analysis
- Dividend Analysis: Assess cash available for dividends
- Investment Analysis: Analyze equity value and cash generation
- Financial Analysis: Evaluate cash available to equity holders
Understanding Levered FCF
- Equity Cash Flow: Cash available to equity holders
- After Debt: Accounts for debt obligations and repayment
- Dividend Potential: Shows cash available for dividends
- Equity Valuation: Used in equity valuation models
Why Use Our Calculator?
- ✅ Equity Analysis: Calculate levered FCF accurately
- ✅ Dividend Analysis: Assess cash available for dividends
- ✅ Investment Analysis: Analyze equity value
- ✅ Financial Analysis: Evaluate cash to equity holders
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is levered free cash flow?
Levered free cash flow is the cash available to equity holders after all expenses, investments, and debt obligations. Levered FCF = Operating Cash Flow - Capital Expenditures - Debt Repayment. Levered free cash flow accounts for debt financing and represents the cash available to equity holders after servicing debt. It's similar to FCFE (Free Cash Flow to Equity) and is used for equity valuation and analysis. Levered FCF shows the cash that can be distributed to shareholders as dividends or used for share buybacks.
How is levered FCF different from unlevered FCF?
Levered FCF accounts for debt obligations (after debt), while unlevered FCF (FCFF) doesn't account for debt (before debt). Levered FCF = Operating Cash Flow - CapEx - Debt Repayment, while unlevered FCF = Operating Cash Flow - CapEx. Levered FCF shows cash to equity holders, while unlevered FCF shows cash to all stakeholders. Levered FCF is used for equity valuation, while unlevered FCF is used for enterprise valuation. Levered FCF is lower because it accounts for debt obligations.
Why is levered FCF important?
Levered FCF is important because it shows the cash available to equity holders after debt obligations. It helps: (1) Equity analysis - analyze cash available to equity holders, (2) Dividend analysis - assess cash available for dividends, (3) Investment analysis - analyze equity value and cash generation, (4) Financial analysis - evaluate cash to equity holders. Levered FCF is a key metric for equity valuation and shows the cash that can be returned to shareholders.
Is levered FCF the same as FCFE?
Levered FCF and FCFE (Free Cash Flow to Equity) are similar concepts but may have slight differences in calculation. FCFE = Operating Cash Flow - CapEx + Net Debt Issued, while Levered FCF = Operating Cash Flow - CapEx - Debt Repayment. FCFE accounts for net debt changes (issuance minus repayment), while levered FCF accounts for debt repayment. Both show cash available to equity holders and are used for equity analysis and valuation. The terms are often used interchangeably.