Free Cash Flow Calculator
Work out free cash flow the simple way, or as FCFF and FCFE from EBIT, tax, depreciation, capex, working capital and debt flows.
Quick answer
Free cash flow is the cash left after investing in the business. Simple FCF = operating cash flow - capital expenditure. FCFF starts from EBIT after tax, adds D&A, then subtracts capex and working capital growth.
Free Cash Flow Calculator
Enter a negative number if working capital fell.
Negative if you repaid more than you borrowed.
Free Cash Flow (selected method)
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Simple FCF
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NOPAT (EBIT after tax)
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FCFF
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FCFE
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Calculation Steps
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Assumptions & method
- Simple FCF = operating cash flow − capital expenditure.
- NOPAT = EBIT × (1 − tax rate). FCFF = NOPAT + depreciation & amortization − capex − increase in net working capital.
- FCFE = FCFF − interest × (1 − tax rate) + net borrowing, where net borrowing is new debt minus repayments.
- Interest is assumed to be fully tax deductible at the rate you enter. Taxes are not modelled beyond that single percentage.
- Leases, stock-based compensation, one-off items and asset sales are not adjusted for. Results are estimates.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How free cash flow works
Free cash flow shows the cash left over after a business has paid for the assets and working capital it needs. The simple method subtracts capital expenditure from operating cash flow. The firm-level method starts with after-tax operating profit, adds back non-cash depreciation, then subtracts capex and the increase in net working capital to give FCFF. Equity holders then see FCFE, which deducts after-tax interest and adds net new borrowing. Because earnings can differ greatly from cash, free cash flow is a common basis for valuation and for judging whether a company can fund dividends, buybacks and growth by itself.