BizJourney
Home › Formulas › Free cash flow (FCF)

How to calculate Free cash flow (FCF)

The Free cash flow (FCF) formula, with plain worked examples you can check yourself.

Free cash flow (FCF) = OCF − CapEx

Worked examples

OCF = 700 · CapEx = 400Free cash flow (FCF) = 300
OCF = 1100 · CapEx = 700Free cash flow (FCF) = 400
OCF = 900 · CapEx = 700Free cash flow (FCF) = 200

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Cash & Liquidity.

Related terms

Cash flowLiquidityWorking capitalOverdraft

Practice Free cash flow (FCF) with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →