Index providers like S&P and MSCI weight companies by free-float market cap. A low free float can make a stock more volatile and less liquid, because few shares actually trade.
How to use the Free Float Calculator
- Outstanding shares
- Restricted shares
- Closely held shares
- Share price
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the outstanding shares, restricted shares, closely held shares (insiders, governments, strategic holders) and the share price.
Tips
- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.
Common mistakes to avoid
- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.
Inputs explained
| Field | What to enter |
|---|---|
| Outstanding shares | A number |
| Restricted shares | A number |
| Closely held shares | A number |
| Share price | Amount in your currency |
What each result means
- Free float = [Outstanding shares] – [Restricted shares] – [Closely held shares]
- Free float percentage = [Free float]÷[Outstanding shares]×100
- Free-float market capitalisation = [Free float]×[Share price]
Example values
How the main result changes when Outstanding shares changes and everything else stays at the example values above:
| Outstanding shares | Free float percentage (%) |
|---|---|
| 50,000,000 | 50 |
| 75,000,000 | 66.67 |
| 100,000,000 | 75 |
| 125,000,000 | 80 |
| 150,000,000 | 83.33 |
| 200,000,000 | 87.5 |
Formula
Free float = outstanding shares − restricted shares − closely held sharesFree float % = free float ÷ outstanding shares × 100Worked example
Inputs — Outstanding shares: 100,000,000; Restricted shares: 5,000,000; Closely held shares: 20,000,000; Share price: $30.
Results — Free float = 75,000,000 shares; Free float percentage = 75 %; Free-float market capitalisation = $2,250,000,000.00.
Frequently asked questions
What is free float?
The shares available for public trading.
Why does free float matter?
Low float stocks can be illiquid and volatile.
Do indexes use free float?
Most major indexes weight companies by free-float market cap.
What formula does the Free Float Calculator use?
Free float = outstanding shares − restricted shares − closely held shares.