Free cash flow: Checking Cash Left After Capital Spending
Free cash flow subtracts capital expenditure from operating cash flow. It highlights cash remaining after the entered investment in long-lived assets.
Use the Free cash flow Calculator to enter your own figures and compare the result with the worked example below.
Free cash flow formula
FCF = Operating cash flow − Capital expenditures
Worked example
| Item | Example value |
|---|---|
| Operating cash flow | 100000 USD |
| Capital expenditure | 30000 USD |
| Free cash flow | 70,000 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Different analysts use different free-cash-flow definitions. Distinguish this calculation from free cash flow to equity or a full business valuation.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see Investor.gov: Introduction to investing. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.