Free Cash Flow (FCF)

FCF = EBIT(1−T) + D&A − CapEx − ΔNWC. Cash available to all capital providers.

Inputs

Result

Loading calculator…
—

How to use this calculator

  • Enter EBIT and tax rate.
  • D&A, CapEx, ΔNWC from cash flow statement.
  • Read FCF.

About this calculator

Free Cash Flow to the Firm (FCFF or "unlevered FCF") = cash available to debt + equity holders before financing decisions. Used in DCF valuation. Add back D&A (non-cash), subtract CapEx (cash outflow), subtract working-capital investment. Variants: FCFE (free cash flow to equity) = FCFF − interest × (1−T) − net debt repayment. FCF margin (FCF / revenue) is a quality metric: 10%+ is healthy.

Frequently asked

Why subtract ΔNWC?+
Increases in working capital tie up cash. ΔNWC = Δ(current assets − current liabilities). Cash invested in inventory/AR isn't available.
D&A is non-cash, why add?+
Already deducted from EBIT (income statement). Add back because no cash actually left.
FCFF vs. FCFE?+
FCFF: before interest expense. FCFE: after interest. FCFF discounts at WACC; FCFE discounts at cost of equity.
Negative FCF?+
Common for high-growth companies investing aggressively (Amazon early years). Look at FCF after maintenance CapEx instead.
Maintenance vs. growth CapEx?+
Maintenance keeps assets running (depreciation rate). Growth adds capacity. Mature companies: most CapEx is maintenance.

Related calculators

EBITDA Calculator
EBITDA = Net Income + Interest + Tax + D&A. Operating earnings before financing + non-cash items.
WACC Calculator
WACC = (E/V)·Re + (D/V)·Rd·(1−T). Blended cost of capital weighted by debt + equity.
Dividend Discount Model (DDM)
P = D₁ / (r − g). Stock price = next dividend / (required return − growth rate).
Gordon Growth Model
Same as DDM: P = D₁ / (k − g). Single-stage constant-growth model.
Return on Assets (ROA)
ROA = Net Income / Avg Total Assets. Profitability per dollar of all assets.
Return on Equity (ROE)
ROE = Net Income / Avg Shareholders' Equity. Profitability per dollar of equity.

More tools you might like

Hand-picked tools that pair well with this one — same audience, same intent.

WACC Calculator
Calc

WACC = (E/V)·Re + (D/V)·Rd·(1−T). Blended cost of capital weighted by debt + equity.

EBITDA Calculator
Calc

EBITDA = Net Income + Interest + Tax + D&A. Operating earnings before financing + non-cash items.

Dividend Discount Model (DDM)
Calc

P = D₁ / (r − g). Stock price = next dividend / (required return − growth rate).

Gordon Growth Model
Calc

Same as DDM: P = D₁ / (k − g). Single-stage constant-growth model.

Return on Equity (ROE)
Calc

ROE = Net Income / Avg Shareholders' Equity. Profitability per dollar of equity.

Petty Cash Log Template
Docs

Running record of petty-cash disbursements with receipts, balance reconciliation, and replenishment.