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📊 Unlevered Beta Calculator

Strip out the effect of debt from a company’s beta to find its unlevered (asset) beta, useful for comparing companies with different capital structures.

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What is unlevered beta?

Unlevered beta (also called asset beta) removes the effect of a company’s financial leverage (debt) from its observed equity beta, isolating the risk attributable to the business’s operations alone.

The formula

Unlevered Beta = Levered Beta / [1 + (1 − Tax Rate) × Debt-to-Equity Ratio]. This is commonly used to compare the underlying business risk of companies with different amounts of debt, or to re-lever a peer’s beta for a different capital structure.

This calculator is for general corporate-finance education.

Last reviewed August 2026