Net Debt Calculator

About this calculator

This calculator computes net debt, total debt − cash and cash equivalents, showing the borrowing a company would still owe if it used every dollar of cash on hand to pay debt down immediately. A company can look highly leveraged on gross debt alone yet be conservatively financed once its large cash pile is netted out — or the reverse, if its "cash" is mostly restricted or tied up.

Credit analysts and M&A dealmakers rely on net debt because it feeds directly into enterprise value (EV = market cap + net debt) and into leverage ratios like net debt/EBITDA, which lenders use as a covenant to judge how much more borrowing a company can safely take on.