Advertisement

Free Cash Flow Calculator

Metrics intermediate FOUNDERCFO

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.

Try it with your numbers

Free Cash Flow$400,000
FCF Margin20%
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%

Enable JavaScript to use the interactive calculator.

Advertisement

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 .

Advertisement

Related Concepts