HesapHanem

Free Cash Flow (FCF) Calculator

Enter operating cash flow and capital expenditures to get free cash flow.

How it is calculated

The calculation is one subtraction: FCF = operating cash flow - capital expenditures. Operating cash flow is the figure from the cash flow statement (cash generated by the business operations after working-capital changes). Capital expenditures are the cash spent on equipment, property and other long-lived assets in the same period.

Enter capital expenditures as a positive amount: a negative value is rejected and returns nothing, and both fields are required. Operating cash flow may be negative, and the result is shown with a minus sign when spending exceeds the cash generated. Both figures should cover the same period and use the same currency; the symbol shown on the result is only a label and nothing is converted. FCF is before dividends, debt repayments and share buybacks.

Worked example

A company reports operating cash flow of 850,000 for the year and spent 320,000 on new equipment and buildings. Free cash flow is 850,000 - 320,000 = $530,000.00. That is the cash left after keeping the asset base running, and it is what could go to dividends, repaying debt or growth. If capital expenditures had been 950,000 instead, the result would be -100,000, meaning the business would have to fund the gap from reserves, borrowing or new equity.

Try this example →

Common mistakes

  • Entering capital expenditures as a negative number, as they often appear in a cash flow statement (for example -320,000). The tool rejects negatives, so enter 320000 and let the tool subtract it.
  • Starting from net income instead of operating cash flow. Net income includes non-cash items such as depreciation and ignores working-capital movements, so it gives a different answer.
  • Mixing periods, such as a full-year operating cash flow with only a quarter of capital expenditures.
  • Leaving capital expenditures blank for a company with no investment. A blank field returns nothing; enter 0 instead.
  • Treating FCF as profit available to owners. Debt repayments and interest obligations still come out of it.

Sources

About this calculator

Free cash flow is operating cash flow − capital expenditures — the cash a business actually generates after paying for the equipment, property, and other investments you enter as capital expenditures, before any dividends, debt repayment, or buybacks. Entering total capex gives the standard measure; entering only maintenance capex gives a maintenance-only view.

Investors and analysts favor FCF over reported net income because it's much harder to manipulate with non-cash accounting choices like depreciation schedules — it's the number that shows whether a company is genuinely generating cash it can return to shareholders or reinvest for growth, versus one that only looks profitable on paper.

Was this helpful?

You can pick up to 3 reactions.

Comments (1)

  • Editorial team

    A negative result is not automatically bad news. A business that is building capacity may spend more than it generates for a stretch, so look at whether it persists and how the gap is financed. A useful follow-up the tool does not do for you is to divide the result by revenue for the same period to see how much of each sale ends up as free cash. Which companies or periods do you compare this against, and what capex do you include?

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators