Cash left after capital expenditure. The Free Cash Flow Calculator takes operating cash flow, capital expenditure, revenue and returns free cash flow plus free cash flow margin, capex as a share of operating cash flow. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Free Cash Flow Calculator works
Free cash flow is the cash left after maintaining and expanding the asset base: the money available to repay debt, pay owners or build reserves.
Worked example
With the example values (operating cash flow of $300,000, capital expenditure of $90,000, revenue of $1,500,000), the free cash flow is $210,000.00; free cash flow margin 14%, capex as a share of operating cash flow 30%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is free cash flow calculated?
free cash flow = operating cash flow − capital expenditure.
Which figures do I need?
Operating cash flow, capital expenditure, revenue. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
