Debt-to-EBITDA Ratio Calculator

Compute gross and net leverage using debt and EBITDA, with optional cash netting and run-rate EBITDA adjustments for covenant and credit committee workflows.

Interest-bearing short-term plus long-term debt in dollars.
Trailing twelve-month or forecast EBITDA in dollars.
Optional. Defaults to 0 if blank. Used for net debt leverage.
Optional. Defaults to 0%. Enter 5 for a +5% adjusted EBITDA scenario.

Educational estimate only. Covenant and rating calculations may require lender- or agency-specific adjustments.

Examples

  • $12,000,000 debt, $3,000,000 EBITDA, $0 cash, 0% adjustment ⇒ Debt-to-EBITDA: 4.00x | Net debt-to-EBITDA: 4.00x | Net debt: $12,000,000.00
  • $18,500,000 debt, $4,200,000 EBITDA, $2,000,000 cash, +5% adjustment ⇒ Debt-to-EBITDA: 4.20x | Net debt-to-EBITDA: 3.74x | Net debt: $16,500,000.00

FAQ

Should lease liabilities be included in total debt?

Follow your covenant definition. Many agreements either include all interest-bearing leases or specify adjustments in schedules.

When should I use net debt-to-EBITDA?

Use net debt leverage when excess unrestricted cash is available to offset debt, especially in liquidity-sensitive credit reviews.

Can I use forecast EBITDA instead of trailing EBITDA?

Yes, if your policy allows it. Clearly label the result as forecast-based and reconcile to audited trailing figures.

Additional Information

  • Outputs are leverage multiples in x and net debt in U.S. dollars with two decimals.
  • Cash and equivalents are optional and default to 0, so the model still computes correctly when left blank.
  • Run-rate adjustment is optional and defaults to 0%. Positive values increase EBITDA, lowering leverage multiples.
  • Use consistent debt scope and EBITDA definition across periods to avoid false trend signals in covenant analysis.

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