Free Cash Flow Calculator

Use the Free Cash Flow Calculator with your own values for EBIT, Tax rate, Depreciation and amortization, Capital expenditures, Change in net working capital, and Other cash-flow adjustments. It reports After-tax operating profit, and Free cash flow, shows the formula and worked example, and does not fetch live market or account data.

Learn the method: step-by-step examples and practice ↓

Inputs

Instant calculation

Required

Result

Instant calculation

After-tax operating profit: 375,000
Free cash flow: 305,000

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Free cash flow to the firm

How much cash remains for all capital providers after operations and required investment?

When to use it and why it works

Start with the firm as a whole: tax operating profit, add back noncash depreciation and amortization, and subtract capital spending and extra operating working capital. The remainder belongs to the cash-flow measure for debt and equity providers together.

FCFF = EBIT × (1 − T) + D&A − CapEx − ΔNWC + other cash flows

Work through an example

Find FCFF from EBIT of 500,000, tax of 25%, D&A of 80,000, CapEx of 120,000, and a working-capital increase of 30,000, with no other adjustments.

Read this example’s explanation

NOPAT is 375,000. Then 375,000 + 80,000 − 120,000 − 30,000 = 305,000.

Turn the question into inputs

Given · Earnings before interest and tax EBIT

Operating earnings for the reporting period before interest and income tax; do not substitute net income.

Given · Tax rate T%

Assumed tax rate on operating profit; enter 25 for 25%. Tax-loss carryforwards and payment timing are not modeled.
Allowed range: ≥ 0 · ≤ 100

Given · Depreciation and amortization D&A

Noncash charges already deducted in EBIT for the same period; these are added back.
Allowed range: ≥ 0

Given · Capital expenditures CapEx

Cash capital spending during the period; enter spending as positive so it is subtracted.
Allowed range: ≥ 0

Given · Increase in operating working capital ΔNWC

Ending minus beginning noncash operating working capital. Enter an increase as positive and a release as negative; exclude cash and financing debt.

Given · Other cash-flow adjustment

Only operating adjustments not already included above: inflows positive, outflows negative. Use zero when none applies.

Your calculated answer

Net operating profit after tax NOPAT: 375,000
Free cash flow to the firm FCFF: 305,000

Follow each step

Multiply EBIT by the after-tax retention fraction to obtain NOPAT.
500000 × (1 − 25 / 100) = 375,000
Add back depreciation and amortization, subtract capital spending and working-capital increases, then apply other adjustments.
375000 + 80000 − 120000 − (30000) + (0) = 305,000

Intermediate calculations retain precision; displayed values are rounded. Follow the precision requested by your question.

What the result means

FCFF measures period cash flow available to all capital providers, not the amount shareholders can receive as dividends. A negative result can reflect substantial investment and needs context.

Mistakes to watch for

Use one reporting period, currency, and scale throughout; do not mix units with thousands or millions.
Subtract working-capital increases. A release is negative, so subtracting it adds to cash flow.
Do not add borrowings, share issuance, or duplicate cash flows as other adjustments. FCFF does not deduct debt principal repayment.

Try another question on your own

EBIT is 1,000, tax 20%, D&A 100, CapEx 200, working capital released 50, and other operating cash inflow 30. Find FCFF.

Set up the formula first. Answers rounded to two decimals are accepted; use six decimals for absolute values below 0.01. For percentages, enter the number before the percent sign.

Your answer · Net operating profit after tax NOPAT Your answer · Free cash flow to the firm FCFF

How to use this calculator

Enter EBIT, Tax rate, Depreciation and amortization, Capital expenditures, Change in net working capital, and Other cash-flow adjustments.

Review the model boundary before calculating: Accounting classifications and free-cash-flow definitions can differ across issuers and reports.

Read After-tax operating profit, and Free cash flow, then compare the result with the cited source and governing product terms.

Formula

Formula used: FCFF = EBIT × (1 − T) + D&A − CapEx − ΔNWC + Other. Percentages are converted to decimals before calculation.

Worked example

Example: with EBIT = 1,000, Tax rate = 25%, Depreciation and amortization = 120, Capital expenditures = 200, and Change in net working capital = 50, the calculated Free cash flow is 620.

Assumptions and limits

Accounting classifications and free-cash-flow definitions can differ across issuers and reports.
Use normalized, comparable accounting inputs from the same reporting period.
This educational estimate is not investment, tax, accounting, or legal advice.

Sources

New York University Stern School of Business: Valuation ResourcesDividend, cash-flow, and relative valuation methods and their assumptions. Reviewed 2026-08-24.
OpenStax, Rice University: Principles of Finance 2e — Operating Cash Flow and Free Cash Flow to the FirmOfficial formula or method source used by this calculator. Reviewed 2026-08-24.
Aswath Damodaran, New York University Stern School of Business: Variables Used in the Data Set — Free Cash Flow to Firm (FCFF)Official formula or method source used by this calculator. Reviewed 2026-08-24.

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Verification

How this calculator is checked

Trust comes from reproducible evidence, not model confidence. You can inspect the formula, assumptions, worked example, and cited sources on this page.

Versioned calculationFormula logic is kept separate from the interface and covered by automated registry and behavior checks.
Cited evidenceSources linked for independent checking: 3.
Transparent AI useAI may assist drafting or adversarial review. Agreement between models is not proof, and no human expert review is claimed unless a named reviewer is shown.

Frequently asked questions

How does the Free Cash Flow Calculator work?

Formula used: FCFF = EBIT × (1 − T) + D&A − CapEx − ΔNWC + Other. Percentages are converted to decimals before calculation.

What should I enter in the Free Cash Flow Calculator?

Enter EBIT, Tax rate, Depreciation and amortization, Capital expenditures, Change in net working capital, and Other cash-flow adjustments using one consistent currency and time basis.

What should I verify before using the Free Cash Flow Calculator result?

Verify these limits: Accounting classifications and free-cash-flow definitions can differ across issuers and reports. Use normalized, comparable accounting inputs from the same reporting period. This educational estimate is not investment, tax, accounting, or legal advice.

Last updated 2026-08-25 · fcff-nopat-delta-nwc-v1 · content-2026-08-24 · Published by YunFanLabs