Free Cash Flow (FCFF/FCFE) Calculator

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Free Cash Flow is the cash generated by a business after accounting for operating expenses and capital expenditures. It represents the cash available to investors (both debt and equity holders). More info →

Input

Depreciation & Amortization

EBIT

Tax Rate (%)

Net Income

Change In Working Capital

Capital Expenditure

Net Borrowing

Shares Outstanding

Current Share Price

Enter company financial details to calculate FCFF and FCFE.

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How This Calculator Works

Free cash flow is the cash a business has left after paying its running costs and investing in assets. FCFF (Free Cash Flow to the Firm) is the cash available to everyone who funds the company, lenders and shareholders. FCFE (Free Cash Flow to Equity) is what is left for shareholders alone, after debt flows.

The Formulas

FCFF = EBIT × (1 − Tax) + D&A − CapEx − ΔWC
FCFE = Net Income + D&A − CapEx − ΔWC + Net Borrowing

Cash flow from operations = Net Income + D&A − ΔWC · Yield = Free cash flow per share ÷ Share price

What Each Input Does

EBIT and Tax Rate (%): Operating profit before interest and tax. It is taxed to get the after-tax operating profit used in FCFF.
Net Income: Profit after interest and tax, the starting point for FCFE.
Depreciation & Amortization: A non-cash cost, so it is added back.
Capital Expenditure: Money spent on long-term assets. It is subtracted.
Change in Working Capital: An increase ties up cash and is subtracted. Enter a negative number for a decrease.
Net Borrowing: New debt raised minus debt repaid. It is added to FCFE only.
Shares Outstanding / Current Share Price: Used to show free cash flow per share and the free cash flow yield.

Step by Step

FCFF: EBIT is taxed, D&A is added back, and CapEx and the change in working capital are subtracted.
FCFE: starting from net income, D&A is added back, CapEx and the change in working capital are subtracted, and net borrowing is added.
Each is divided by shares outstanding to get a per-share figure.
Each per-share figure is divided by the share price to get a yield (%).

Reading the Result

Both positive – the business generates spare cash for lenders and shareholders.

FCFF positive, FCFE not – the business makes cash, but less is left for shareholders.

Negative FCFF – the business uses more cash than it makes, which may signal pressure.

Quick Example

EBIT 500,000, tax 25%, net income 300,000, D&A 100,000, CapEx 150,000, change in working capital 50,000, net borrowing 40,000, 100,000 shares at 20. FCFF = 375,000 + 100,000 − 150,000 − 50,000 = 275,000 (2.75 per share, 13.75% yield). FCFE = 300,000 + 100,000 − 150,000 − 50,000 + 40,000 = 240,000 (2.40 per share, 12.00% yield).