Enter the net income, capital expenditures, depreciation, and changes in working capital into the calculator. The calculator will evaluate and display the free cash flow.

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## Free Cash Flow Formula

The following equation can be used to calculate the free cash flow of a business.

FCF = (NI + D – WC) – CE

- Where FCF is free cash flow
- NI is net income
- D is deprecation
- WC is change in working capital
- CE is capital expenditure

## Free Cash Flow Definition

Free cash flow is defined as the total free cash after expenses and working capital are accounted for.

## Free Cash Flow Example

How to calculate free cash flow

**First, determine the net operating income**This will be your total revenue generated by your business.

**Next, determine the depreciation**Determine the total value of deprecation of the assets in your business.

**Next, determine the change in working capital**Calculate your change in working capital over the time period being analyzed.

**Next, determine the capital expenditures**This should be equal to your total operating expenses.

**Finally, calculate the free cash flow**Calculate the free cash flow of your business or asset using the information from steps 1-4 and the formula above.

## FAQ

**What is free cash flow?**

Free cash flow is the total cash, or money, that you have available to spend after all expenses and depreciation is accounted for.