Free Cash Flow Calculator Online

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Free Cash Flow Calculator

Free Cash Flow Calculator

The Free Cash Flow is”Purchases of property, plant, and equipment”. The Free cash Flow  equal to operating cash flow less than capital expenditures.

Formula us,

Free cash flow = Operating cash flow – Capital expenditures

Let us consider,

  • Operating cash flow means the net cash generated by the operations of our company. As mentioned above, it is a better approach for real cash earnings than EBITDA or net income.
  • Capital expenditures (CAPEX) represents the amount of money directed for expanding/growing the business during the period.

Example For Free Cash Folw

Free cash flow = Operating cash flow – Capital expenditures

Operating Cash Flow(5,00,000$) , Capital Expenditures (3,00,000$)

The answer is Free Cash Flow – $2,00,000

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