Free Cash Flow Calculator
Parameter |
Description |
Example Value |
Net Income |
The company’s total earnings (or profit) after all expenses have been deducted from revenue. |
$50,000 |
Depreciation and Amortization |
The allocation of the cost of tangible and intangible assets over their useful lives. |
$10,000 |
Change in Working Capital |
The change in the company’s working capital (current assets minus current liabilities). |
$5,000 |
Capital Expenditures |
The funds used by the company to acquire or upgrade physical assets such as property, buildings, or equipment. |
$15,000 |
Free Cash Flow (FCF) |
The cash generated by the company after accounting for capital expenditures (Net Income + Depreciation and Amortization + Change in Working Capital – Capital Expenditures). |
$40,000 |