# FCFF Calculator — Free Cash Flow to Firm

URL: https://speedycalculator.com/calculators/finance/fcff/
Last updated: 2026-10-25

> The FCFF calculator works out free cash flow to the firm – the cash available to all providers of capital (debt and equity) – from EBIT, net income, or operating cash flow.

## Inputs

- Calculate from
- EBIT
- Net income
- Operating cash flow
- Interest expense
- Tax rate (%)
- Depreciation and amortization
- Increase in working capital
- Capital expenditure

## Results

- Free cash flow to firm

## Formula

```
FCFF = EBIT × (1 − t) + D&A − capex − ΔWC
FCFF = net income + D&A + interest × (1 − t) − capex − ΔWC
FCFF = CFO + interest × (1 − t) − capex
```

## Explanation

FCFF is discounted at the WACC to value the whole firm (enterprise value). Subtract net debt to get equity value.

### How to use the FCFF Calculator — Free Cash Flow to Firm

- **Calculate from**
- **EBIT**
- **Net income**
- **Operating cash flow**
- **Interest expense**
- **Tax rate**
- **Depreciation and amortization**
- **Increase in working capital**
- **Capital expenditure**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Choose the method and enter the figures.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterCalculate fromChoose one: EBIT, Net income, Operating cash flowEBITAmount in your currencyNet incomeAmount in your currencyOperating cash flowAmount in your currencyInterest expenseAmount in your currencyTax rateIn %Depreciation and amortizationAmount in your currencyIncrease in working capitalAmount in your currencyCapital expenditureAmount in your currency

### Example values

How the main result changes when **EBIT** changes and everything else stays at the example values above:

EBITFree cash flow to firm275,000117,250412,500225,875550,000334,500687,500443,125825,000551,7501,100,000769,000

## Worked example

Inputs — Calculate from: EBIT; EBIT: $550,000; Net income: $400,000; Operating cash flow: $560,000; Interest expense: $40,000; Tax rate: 21 %; Depreciation and amortization: $150,000; Increase in working capital: $30,000; Capital expenditure: $220,000.

Results — **Free cash flow to firm = $334,500.00**.

## FAQ

**What is FCFF?**
Cash flow available to both debt and equity holders.

**What discount rate is used with FCFF?**
The weighted average cost of capital (WACC).

**Is FCFF the same as unlevered free cash flow?**
Yes, essentially.

**What formula does the FCFF Calculator — Free Cash Flow to Firm use?**
FCFF = EBIT × (1 − t) + D&A − capex − ΔWC.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)