Enter the total unlevered beta, tax rate, debt, and equity into the calculator. The calculator will evaluate and display the levered beta.

- Debt to Equity Ratio Calculator
- Equity Value Calculator
- Equity Multiplier Calculator
- Unlevered Beta Calculator

## Levered Beta Formula

The following equation is used to calculate a levered beta.

Levered Beta = UB * [1 + (1 – T) * (D / E)]

- Where T is the tax rate (%)
- UB is the unlevered beta
- D is the total debt
- E is the total equity

## Levered Beta Definition

Levered beta is a measure of a risk of a companies stock when analyzing the rate of return of a stock using CAPM. It takes into account the companies debt to equity ratio in order to come up with a risk factor that can be used as an investing metric.

## Levered Beta Example

How to calculate levered beta?

**First, determine the tax rate.**Determine the effective tax percentage.

**Next, determine the total debt.**Calculate the total debt.

**Next, determine the total equity.**Calculate the total equity.

**Finally, calculate the levered beta.**Calculate the levered beta using the formula above.

## FAQ

**What is levered beta?**

Levered beta is a measure of the risk of a stock or business based on their tax rate, total debt, and total equity.