Free Cash Flow (FCF) Calculator

How it is calculated

The calculation is one subtraction: FCF = operating cash flow - capital expenditures. Operating cash flow is the figure from the cash flow statement (cash generated by the business operations after working-capital changes). Capital expenditures are the cash spent on equipment, property and other long-lived assets in the same period.

Enter capital expenditures as a positive amount: a negative value is rejected and returns nothing, and both fields are required. Operating cash flow may be negative, and the result is shown with a minus sign when spending exceeds the cash generated. Both figures should cover the same period and use the same currency; the symbol shown on the result is only a label and nothing is converted. FCF is before dividends, debt repayments and share buybacks.

Common mistakes

• Entering capital expenditures as a negative number, as they often appear in a cash flow statement (for example -320,000). The tool rejects negatives, so enter 320000 and let the tool subtract it.
• Starting from net income instead of operating cash flow. Net income includes non-cash items such as depreciation and ignores working-capital movements, so it gives a different answer.
• Mixing periods, such as a full-year operating cash flow with only a quarter of capital expenditures.
• Leaving capital expenditures blank for a company with no investment. A blank field returns nothing; enter 0 instead.
• Treating FCF as profit available to owners. Debt repayments and interest obligations still come out of it.