💰 Levered Free Cash Flow Calculator
Calculate levered free cash flow (LFCF), the cash a company generates after covering operating costs, reinvestment, and its debt obligations.
What Is Levered Free Cash Flow?
Levered free cash flow (LFCF) is the cash left over for equity shareholders after a company has paid its operating expenses, reinvested in the business through capital expenditures, and met its required debt payments. It’s called "levered" because, unlike unlevered free cash flow, it already accounts for the effect of debt financing.
The formula used here is: LFCF = Net Income + Depreciation & Amortization – Change in Net Working Capital – Capital Expenditures – Mandatory Debt Repayments.
- Depreciation and amortization are added back because they are non-cash expenses.
- An increase in net working capital ties up cash, so it is subtracted; a decrease frees up cash.
- CapEx and mandatory (scheduled) debt repayments are cash outflows required to sustain and finance the business.
Note: LFCF is a widely used metric in equity valuation and credit analysis. This calculator is for general financial education and planning; actual company filings may define line items slightly differently.