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Net Debt to EBITDA Calculator

Enter total debt, cash and EBITDA to get the net debt to EBITDA ratio.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

Net debt to EBITDA is (total debt − cash and equivalents) ÷ EBITDA — it estimates how many years of current earnings, before interest, tax, depreciation and amortization, it would take a company to pay off its debt if every dollar of EBITDA went straight to debt repayment.

Lenders write covenants directly against this ratio (commonly capping it at 3-4x for investment-grade credits) because it's the standard shorthand for how stretched a company's balance sheet is — private equity deals, leveraged buyouts and credit ratings all lean on net debt/EBITDA as the headline leverage number, since it normalizes debt against the cash-generating power that actually services it.

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