Free Cash Flow (FCF) Calculator
Replace the sample values with your own, in one currency and one reporting period. Enter percentages as whole numbers: 2 for 2%. Calculations run in your browser.
FCF = Operating Cash Flow − Capital Expenditures | Variable | Meaning |
|---|---|
Operating Cash Flow | Cash generated by core operations over the period. |
Capital Expenditures | Cash spent on long-lived assets such as equipment or capitalized software. |
Worked example
- Operating Cash Flow
- $500,000
- Capital Expenditures
- $100,000
- Revenue (same period)
- $2,000,000
- → Free Cash Flow
- $400,000
- → FCF Margin
- 20%
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What Free Cash Flow measures
Free Cash Flow is the cash a company generates after operating expenses and capital expenditures — the cash actually available to fund growth, repay investors, or extend runway.
Prepare your inputs
- Take operating cash flow from the cash flow statement for a defined period. Use the reported cash figure, with its working-capital effects, rather than substituting net income.
- Subtract capital expenditure cash outflows using a consistent scope. State how capitalized software development is classified in your reporting.
- For FCF margin, divide FCF by recognized revenue from the same period. Compare the result across several periods and reconcile major timing effects.
Formula
FCF = Operating Cash Flow − Capital Expenditures | Variable | Meaning |
|---|---|
Operating Cash Flow | Cash generated by core operations over the period. |
Capital Expenditures | Cash spent on long-lived assets such as equipment or capitalized software. |
Check the sample calculation
Worked example
- Operating Cash Flow
- $500,000
- Capital Expenditures
- $100,000
- Revenue (same period)
- $2,000,000
- → Free Cash Flow
- $400,000
- → FCF Margin
- 20%
Before using the result
- FCF is not a single standardized accounting line across every company. Read the stated reconciliation before comparing.
- Do not subtract the same capitalized cost twice if it is already reflected in the cash input you selected.
- An ARR denominator creates a different ratio from FCF margin; use period revenue for this calculator.
A dash means the result is undefined for the inputs, such as division by zero. Review the assumptions and input errors before interpreting it.
Read the Free Cash Flow guide for a business scenario, interpretation, and frequently asked questions.
Sources and methodology
The references below explain the underlying methods. Our worked scenarios use hypothetical figures; they are not company results or current market benchmarks.
- Stripe: Cash flow computation
Operating cash flow minus capital expenditures.
Found an error or a definition that differs from your reporting? Send a correction with the page URL and the method you use.