Free LBO Calculator
Model leveraged-buyout returns in seconds — IRR, MOIC, and the value-creation bridge interviewers love to probe. Free, no signup.
Assumptions
Value-creation bridge
Where the equity gain of $602M comes from
These three levers are the classic LBO returns drivers. Practice explaining them in a paper LBO drill.
How an LBO calculator works
A leveraged buyout (LBO) calculator models the return a private equity firm earns by buying a company with debt, growing it, paying down that debt with its cash flow, and selling at exit. Entry enterprise value equals entry EBITDA × the entry multiple; debt raised is a multiple of EBITDA (leverage). The equity check is what's left over. Over the hold, EBITDA compounds, free cash flow sweeps the debt down, and at exit you sell at an exit multiple, repay remaining debt, and keep the equity.
Returns are reported as IRR and MOIC, and the value-creation bridge splits the equity gain into EBITDA growth, multiple expansion, and debt paydown — the exact framework interviewers expect. For the mechanics under interview pressure, see paper LBO and walk me through an LBO.