Leverage Ratio Calculator
Leverage is not one ratio. A bank looks at debt-to-equity, a real estate lender at debt-to-assets, and a sponsor at net debt to EBITDA — and the same balance sheet can look conservative on one and stretched on another. Enter your numbers once to see all three.
Your leverage
Debt-to-equity
Total debt ÷ total equity
Typical comfort: under 2.0x
1.50x
Debt-to-assets
Total debt ÷ total assets
Typical comfort: under 60%
50.00%
Net debt / EBITDA
(Total debt − cash) ÷ EBITDA
Typical comfort: under 3.0x
2.13x
Benchmarks are general middle-market comfort zones, not covenant levels. Capital-intensive businesses carry more leverage than asset-light ones, and a credit agreement will define debt and EBITDA on its own terms.
Net debt to EBITDA is the ratio most credit agreements actually test, and the one a buyer will price off. For how the three ratios differ and what each one is really telling you, read Leverage Ratio & Debt-to-Equity, Explained. To test the same leverage against your actual covenant and see how far EBITDA could fall before it binds, run the Covenant Headroom Calculator or the DSCR Calculator. Book a working session to have it run on your own numbers.
More tools
Fractional vs. Full-Time CFO Cost Calculator
See the loaded cost of a full-time CFO hire versus a fractional retainer — first year and three years.
Covenant Headroom Calculator
Check your DSCR and leverage against typical covenants — and how much EBITDA headroom you have before a breach.
DSCR Calculator
Enter NOI and annual debt service to get your debt service coverage ratio — and the payment your cash flow actually supports.
Cash Runway Calculator
Turn cash, revenue, and burn into a runway in months, a zero-cash date, and a 13-week cash projection.
Book a working session.
A 20-minute call, a clear read on your numbers, and a straight answer on whether a fractional CFO is the right call right now.