# Free Cash Flow Calculator

URL: https://speedycalculator.com/calculators/finance/free-cash-flow/
Last updated: 2026-10-25

> The free cash flow calculator works out the cash a company generates after paying for operations and capital expenditure – from operating cash flow, or from EBIT, taxes, depreciation, working capital changes and capex – and FCF margin.

## Inputs

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

## Results

- Free cash flow
- FCF margin

## Formula

```
FCF = operating cash flow − capital expenditure
or FCF = EBIT × (1 − tax rate) + D&A − change in working capital − capex
```

## Explanation

Free cash flow is the cash available to repay debt, pay dividends, buy back shares or invest. Negative FCF isn't always bad – growing companies often invest heavily.

### How to use the Free Cash Flow Calculator

- **Calculate from**
- **Operating cash flow**
- **EBIT**
- **Tax rate**
- **Depreciation and amortization**
- **Increase in working capital**
- **Capital expenditure**
- **Revenue**

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: Operating cash flow, EBITOperating cash flowAmount in your currencyEBITAmount in your currencyTax rateIn %Depreciation and amortizationAmount in your currencyIncrease in working capitalAmount in your currencyCapital expenditureAmount in your currencyRevenueAmount in your currency

### Example values

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

Operating cash flowFree cash flow300,00080,000450,000230,000600,000380,000750,000530,000900,000680,0001,200,000980,000

## Worked example

Inputs — Calculate from: Operating cash flow; Operating cash flow: $600,000; EBIT: $500,000; Tax rate: 21 %; Depreciation and amortization: $150,000; Increase in working capital: $40,000; Capital expenditure: $220,000; Revenue: $3,000,000.

Results — **Free cash flow = $380,000.00**; FCF margin = 12.67 %.

## FAQ

**What is free cash flow?**
Cash from operations minus capital expenditures.

**Is negative free cash flow bad?**
Not necessarily for a fast-growing company investing for the future.

**What is FCF used for?**
Valuation (DCF), dividends, buybacks and debt repayment.

**What formula does the Free Cash Flow Calculator use?**
FCF = operating cash flow − capital expenditure.


## Sources

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