Free Cash Flow Calculator

Calculate free cash flow from operating cash flow less the capital expenditure needed to sustain it.

About Free Cash Flow Calculator

The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.

Formula

Free Cash Flow

Free Cash Flow = Operating cash flow − Capital expenditure

Operating cash flow: Component of the cash flow statement
Capital expenditure: Component of the cash flow statement

Worked example

With the default values below, Free Cash Flow Calculator returns Free Cash Flow of 58,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Operating cash flow: 90,000
Capital expenditure: 32,000

Results

Free Cash Flow: 58,000.00
Total Positive Components: 90,000.00
Total Deductions: 32,000.00
Result as Share of Positive Components: 64.44%
Verdict: Positive — the components net to a surplus

Step by step

1Values used
2Free Cash Flow
3Free Cash Flow= 58,000.00
4Total Positive Components= 90,000.00
5Total Deductions= 32,000.00
6Result as Share of Positive Components= 64.44
7Verdict= Positive — the components net to a surplus

Assumptions and limits

The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Free Cash Flow calculated?

Free Cash Flow = Operating cash flow − Capital expenditure The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.

Why does Free Cash Flow matter?

Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.

What values do I need to enter?

This calculator takes 2 inputs: Operating cash flow, Capital expenditure. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.