Net Debt Calculator

Net Debt = Total Debt (short-term + long-term) − Cash & Cash Equivalents. It estimates how much debt a company would still owe if it used all its available cash to pay down debt immediately.

All interest-bearing debt: short-term borrowings, the current portion of long-term debt, and long-term debt/bonds — it excludes non-debt liabilities like accounts payable or accrued expenses.

A negative result means the company holds more cash and equivalents than its total debt — sometimes called a 'net cash' position, generally seen as a sign of financial strength and low leverage risk.

Net debt gives a more realistic picture of a company's actual leverage, since a large cash pile could be used to pay down debt at any time — two companies with identical total debt but very different cash reserves have very different real financial risk.