Overview
Enter operating cash flow and capital expenditures (CapEx) to calculate free cash flow: FCF = Operating Cash Flow − CapEx. Free cash flow represents the cash a business generates after covering the spending needed to maintain and grow its asset base - the cash that's actually left over for paying down debt, paying dividends, buying back shares, or reinvesting elsewhere, rather than being tied up in equipment, property, or other capital projects. FCF can come out negative, most often for capital-intensive or rapidly growing businesses whose CapEx currently exceeds their operating cash flow - this is allowed as a normal result here rather than an error, and isn't automatically framed as bad, since heavy near-term investment can be a deliberate and reasonable choice depending on the business. This calculator computes the standalone FCF figure only; it doesn't break out the further variants unlevered free cash flow to the firm (FCFF) or free cash flow to equity (FCFE), which require additional adjustments for interest, debt principal, and non-operating items. Runs entirely client-side, and this is an informational estimate, not financial advice.
Best for: Checking how much cash a business actually has left after funding its capital spending
How to use this tool
- Enter operating cash flow. Cash generated by core operations, from the cash flow statement.
- Enter capital expenditures. Spending on property, plant, equipment, and other capital assets.
- Read the free cash flow. Operating Cash Flow − CapEx.
Frequently asked questions
Yes - if capital expenditures exceed operating cash flow in a given period, FCF is negative. This calculator allows that as a valid result rather than an error, and doesn't automatically frame it as a problem, since it's common and often deliberate for capital-intensive or fast-growing businesses investing heavily in their asset base.
No - this calculates standalone free cash flow (Operating Cash Flow − CapEx) only. Unlevered free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are related but distinct variants that require additional adjustments for interest expense, debt principal changes, and other non-operating items, which this tool doesn't model.
Free cash flow is frequently the exact cash flow figure projected forward and discounted in a DCF valuation - this calculator computes a single period's FCF from its two inputs, while the DCF Calculator takes a series of projected cash flows (which could be FCF figures) and discounts them to a present value.