Free Cash Flow Calculator

Calculate Free Cash Flow







Formula

To calculate the Free Cash Flow (\(FCF\)):

\[ FCF = (NI + D - WC) - CE \]

Where:

What is Free Cash Flow?

Free cash flow is a financial metric that indicates the amount of cash a company generates after deducting its operating expenses and capital expenditures. It represents the cash available to the company for various purposes, such as expansion, debt payment, dividends, or investment in new projects.

Example Calculation

Let's assume the following values:

Using the formula:

\[ FCF = (100,000 + 20,000 - 10,000) - 30,000 = 80,000 \]

The Free Cash Flow is $80,000.