Enter Financial Inputs
Use the fields below to estimate net debt, leverage, and capital structure measures.
Formula Used
Net debt measures how much debt remains after subtracting highly liquid assets. It helps evaluate leverage more realistically than gross debt alone.
Gross Debt = Current Debt + Long-Term Debt + Lease Liabilities + Notes Payable + Bonds Payable
Liquid Assets = Cash + Cash Equivalents + Marketable Securities
Net Debt = Gross Debt − Liquid Assets
Net Debt / EBITDA = Net Debt ÷ EBITDA
Gross Debt / Capital = Gross Debt ÷ (Gross Debt + Total Equity) × 100
Net Debt / Capital = Net Debt ÷ (Net Debt + Total Equity) × 100
Enterprise Value = Market Capitalization + Net Debt
Net Debt Share of EV = Net Debt ÷ Enterprise Value × 100
A negative net debt value means liquid assets exceed total debt. That indicates a net cash position.
How to Use This Calculator
- Enter all short-term and long-term borrowing values.
- Add lease liabilities, notes payable, and bonds payable.
- Enter cash, cash equivalents, and marketable securities.
- Optionally include EBITDA, equity, and market capitalization.
- Choose a currency symbol and decimal precision.
- Press Calculate Net Debt to view the result.
- Review the summary table and Plotly graph.
- Download the result as CSV or PDF if needed.
Example Data Table
| Item | Example Value |
|---|---|
| Current Debt | $250,000.00 |
| Long-Term Debt | $1,750,000.00 |
| Lease Liabilities | $180,000.00 |
| Notes Payable | $120,000.00 |
| Bonds Payable | $400,000.00 |
| Cash | $600,000.00 |
| Cash Equivalents | $250,000.00 |
| Marketable Securities | $150,000.00 |
| Gross Debt | $2,700,000.00 |
| Liquid Assets | $1,000,000.00 |
| Net Debt | $1,700,000.00 |
| EBITDA | $850,000.00 |
| Net Debt / EBITDA | 2.00x |
| Total Equity | $2,400,000.00 |
| Gross Debt / Capital | 52.94% |
| Net Debt / Capital | 41.46% |
| Market Capitalization | $5,800,000.00 |
| Enterprise Value | $7,500,000.00 |
| Net Debt Share of EV | 22.67% |
Frequently Asked Questions
1. What does net debt show?
Net debt shows debt left after subtracting liquid assets. It gives a clearer view of financial obligations than gross debt alone because available cash can reduce repayment pressure.
2. Why is cash subtracted from total debt?
Cash and near-cash resources can be used to repay obligations quickly. Subtracting them helps measure the debt burden that remains after accessible liquidity is considered.
3. Can net debt be negative?
Yes. Negative net debt means liquid assets exceed total debt. Analysts often describe that as a net cash position, which may indicate stronger balance sheet flexibility.
4. Should lease liabilities be included?
They usually should be included when you want a fuller debt picture. Many analysts treat lease obligations as financing commitments that affect leverage and repayment capacity.
5. What is a good net debt to EBITDA ratio?
There is no universal target. Lower ratios often suggest lighter leverage, but acceptable levels depend on industry stability, margins, growth, and lender requirements.
6. Is market capitalization required?
No. Market capitalization is optional here. It is only used to estimate enterprise value and the share of enterprise value represented by net debt.
7. What assets count as liquid assets?
This calculator uses cash, cash equivalents, and marketable securities. Some analysts also review restricted cash separately because it may not be fully available for debt repayment.
8. Is net debt enough for credit analysis?
No. Net debt is useful, but it should be reviewed with cash flow, interest coverage, debt maturities, covenant terms, and the quality of earnings.