Levered Free Cash Flow Calculator

FINANCIAL CALCULATORS Levered Free Cash Flow Calculator Calculate the free cash flow available to equity holders after debt obligations.
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What is the Levered Free Cash Flow Calculator & How does it work?
Levered Free Cash Flow (LFCF) is a measure of the amount of cash generated by a company’s operations, excluding non-cash expenses and capital expenditures. It represents the cash available to all investors in the firm, including equity holders and debt holders.
The formula for Levered Free Cash Flow is:
LFCF = EBITDA – Capital Expenditures – Change in Working Capital + Interest Expense
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization
Capital Expenditures = Spending on long-term assets
Change in Working Capital = Change in current assets minus change in current liabilities
Interest Expense = Cost of debt financing
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Frequently Asked Questions
What is Levered Free Cash Flow?
Levered Free Cash Flow (LFCF) measures the cash available to all investors after accounting for operating costs, capital expenditures, and changes in working capital.
How do I calculate EBITDA for this calculator?
EBITDA is calculated by adding back depreciation and amortization to net income and then adding interest and taxes.
Why does capital expenditure matter in LFCF calculation?
Capital expenditures represent investments in long-term assets, which are subtracted from EBITDA to determine the cash available for investors.
How do changes in working capital affect LFCF?
Changes in working capital (accounts receivable, inventory, accounts payable) impact the amount of cash generated by operations and are included in the LFCF calculation.
What is the role of interest expense in calculating LFCF?
Interest expense is added back to EBITDA because it represents a financing cost rather than an operating expense, affecting the overall cash flow available to investors.

Results are for informational purposes only and do not constitute professional advice.