Free Cash Flow Calculator
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.
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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Free Cash Flow 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. |
How to Calculate Free Cash Flow
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%
Full definition, benchmarks, and common mistakes live on the Free Cash Flow glossary page ; quick answers are in the Free Cash Flow FAQ .