Levered Free Cash Flow (LFCF)

Measure cash available to equity holders after debt obligations are met — what's left for dividends and share buybacks.

Net income

Depreciation & amortization

Other non-cash charges

Change in working capital

Capital expenditures

Interest payments (after-tax)

Principal repayments

New debt proceeds

Net income$0.00

+ Depreciation & amortization$0.00

+ Other non-cash charges$0.00

- Change in working capital$0.00

Operating cash flow$0.00

- Capital expenditures$0.00

Unlevered free cash flow$0.00

- Interest payments$0.00

- Principal repayments$0.00

+ New debt proceeds$0.00

Levered free cash flow$0.00

Levered free cash flow

$ 0

Cash available to equity holders

PNG · made in your browser, nothing uploaded

Industry use cases

Dividend Sustainability Equity investors calculate LFCF to verify that dividend payments are sustainable and funded by actual cash generation rather than balance sheet drawdowns.

Leveraged Buyout Modeling Private equity firms project LFCF to estimate equity returns and plan debt paydown schedules in LBO transaction scenarios.

Capital Allocation Strategy Corporate finance teams use LFCF to determine capacity for share buybacks, reinvestment, and new debt issuance without straining reserves.

Equity Valuation Analysis Research analysts apply DCF models with LFCF projections to value equities and compare cash generation strength across peer companies.

Stay in the loop

New tools, in your inbox.

Get an occasional email when we ship new calculators and updates. No spam, unsubscribe anytime.

We respect your privacy. No spam, ever.