Free Cash Flow Calculator
This calculator computes Free Cash Flow using multiple commonly used methods so you can compare cash‑based and accrual‑based measures. Use the method that matches your data sources: operating cash flow if you have a cash flow statement, or the net income reconciliation if you only have an income statement.
Results are intended for analysis and planning only. The tool provides intermediate variables (NOPAT, after‑tax interest, FCFF, FCFE) so you can see how reconciliations and adjustments affect the final FCF figure.
Simple, cash-based FCF: cash from operations less capital expenditures. Best when you have a reliable reported operating cash flow.
Inputs
Results
Free Cash Flow (OCF − CapEx)
$80,000.00
| Output | Value | Unit |
|---|---|---|
| Free Cash Flow (OCF − CapEx) | $80,000.00 | — |
Visualization
Methodology
Available methods: (1) Operating cash flow minus capital expenditures, (2) Net income reconciliation (add non‑cash charges, subtract Δ working capital and CapEx), (3) Free Cash Flow to Firm (NOPAT + non‑cash charges − Δ working capital − CapEx), (4) Free Cash Flow to Equity (FCFF adjusted for after‑tax interest and net debt flows).
Calculation and implementation practices follow general software quality and security guidance. Adopted controls and recommendations reference NIST cybersecurity frameworks for data integrity and confidentiality, ISO quality management principles for input validation and change control, and IEEE software lifecycle best practices for traceability of formulas and tests. These references support dependable numeric results but do not replace professional audit or regulatory reporting requirements.
Worked examples
Example 1: If operating cash flow is 120,000 and CapEx is 30,000, OCF method yields FCF = 90,000.
Example 2: If net income 80,000 + D&A 10,000 − ΔWC 5,000 − CapEx 20,000 yields reconciled FCF = 65,000 (assuming no borrowings or dividends).
Further resources
External guidance
Expert Q&A
Should CapEx be entered as a positive or negative number?
Enter CapEx as a positive number representing cash outflow. The calculator subtracts CapEx from cash or accrual measures.
How should I enter the tax rate?
Enter the tax rate as a percentage (for example, 25 for 25%). After‑tax adjustments use tax_rate / 100 in formulas.
Which method is most accurate?
Accuracy depends on data quality. Use OCF − CapEx when reported cash flow is reliable. Use reconciliation methods when only accrual accounts are available. Compare methods as part of sensitivity analysis.
Does this tool replace audited financial statements or regulatory filings?
No. This calculator is for analysis and planning. For regulatory compliance and audited reporting, follow applicable accounting standards and engage qualified professionals.
What are the known limitations and accuracy caveats?
Inputs may be estimates, rounding or classification differences across accounting standards can change results, and one‑time or non‑recurring items may require manual adjustments. Perform sensitivity checks and document assumptions.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov/
- International Organization for Standardization (ISO) — https://www.iso.org/
- IEEE - Institute of Electrical and Electronics Engineers — https://www.ieee.org/
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov/
- Financial Accounting Standards Board (FASB) — https://www.fasb.org/