Free Cash Flow Calculator
Calculate free cash flow from cash flow from operations and capital expenditures.
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How this calculator works
Free cash flow under this common definition represents operating cash generated after capital spending.
Formula
Worked example
$120 million of operating cash flow minus $40 million of capital expenditures produces $80 million of free cash flow.
How to interpret the result
Free cash flow under this common definition represents operating cash generated after capital spending.
Assumptions & limitations
Capital expenditures should be entered as a positive cash outflow amount. Other definitions may adjust for acquisitions, stock compensation, leases or working-capital classifications.
Practical context
When this calculator is useful
Free cash flow is useful when you want a simplified estimate of cash generated by operations after capital expenditures. It helps separate accounting profit from cash that remains after maintaining or expanding the asset base.
How investors commonly use it
Investors commonly track FCF over time, compare it with net income and use it as an input to valuation, debt reduction, dividend sustainability and share-repurchase analysis.
What this metric does not tell you
This common definition is simplified. Capital expenditure classification, working-capital swings, acquisitions and stock-based compensation can affect economic cash generation, and negative FCF can be intentional during investment phases.