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

## Levered Beta Formula

The following equation is used to calculate a levered beta.

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

- Where T is the tax rate (%)
- 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.