Free Cash Flow Calculator
Calculate free cash flow (FCF) from operating cash flow and capital expenditures. Add revenue, a prior-period FCF or a target when those comparisons are useful.
Results
Free cash flow formula
Free cash flow = cash flow from operating activities − capital expenditures paid. This cash-flow-statement approach estimates cash left after funding operations and long-lived asset purchases. Enter capital expenditures as a positive cash outflow; the calculator performs the subtraction.
When revenue is supplied, FCF margin = free cash flow ÷ revenue × 100%. A target uses required operating cash flow = target FCF + capital expenditures. These are period comparisons, not automatic forecasts.
Verified examples
| Inputs | Free cash flow | Additional results |
|---|---|---|
| $250,000 operating cash flow; $90,000 capex; $1,000,000 revenue; $100,000 prior FCF; $200,000 target | $160,000 | 16.00% margin; $60,000 or 60.00% increase; $40,000 target gap; $290,000 required operating cash flow |
| −$20,000 operating cash flow; $30,000 capex; no optional inputs | −$50,000 | Negative FCF; margins and comparisons not calculated |
| €120,000 operating cash flow; €20,000 capex; €100,000 prior FCF | €100,000 | €0 change; 0.00% change |
How to interpret free cash flow
Positive FCF means operating cash flow exceeded the entered capital expenditures for the period. Negative FCF means those expenditures were greater than operating cash flow; it can result from weak operations, heavy investment or both. A single result does not identify the cause, so compare the cash-flow statement, several periods and the business’s investment cycle.
This calculator uses the common operating-cash-flow-minus-capex definition. It does not calculate unlevered free cash flow to the firm (FCFF), free cash flow to equity (FCFE), discounted cash flow value or owner earnings. Those measures can require taxes, debt flows, interest treatment and other adjustments.
Input limits and assumptions
- All monetary inputs must use the same currency and accounting period, have no more than two decimal places and stay within ±1,000,000,000,000. Capital expenditures and revenue cannot be negative.
- Capital expenditures are entered as a positive cash outflow. Do not paste the negative sign shown on some cash-flow statements, or the subtraction would be reversed.
- Revenue is optional. Revenue of zero makes FCF margin and capex-to-revenue undefined; it does not change FCF.
- A prior FCF of zero permits an absolute change but makes percentage change undefined.
- The target assumes capital expenditures stay unchanged and does not model working-capital, financing, tax or timing changes.
- Currency selection changes formatting only. This educational calculator does not classify cash flows, normalize acquisitions, value a company or provide accounting, tax or investment advice.
Use cash flow from operating activities and cash capital expenditures from consistent financial statements. Companies may disclose alternative non-GAAP FCF definitions; reconcile their adjustments before comparing results.
Frequently asked questions
Is free cash flow the same as net income?
No. Net income is an accrual-accounting measure. Operating cash flow adjusts for noncash items and working-capital movements, and FCF then subtracts capital expenditures.
Should capital expenditures be negative?
Not in this calculator. Enter the magnitude paid as a positive number. The formula subtracts it from operating cash flow.
Can free cash flow be negative?
Yes. Negative FCF can reflect negative operating cash flow, investment spending greater than operating cash generation or both. Interpretation depends on the reason and the period.
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