Calculate FCF from operating cash flow, FCF margin, FCF yield, cash conversion, and compare against industry benchmarks
| FCF margin | Category | What it means |
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| Sector | Typical FCF margin range | Implied FCF at your revenue | Your margin vs. benchmark |
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| Margin scenario | FCF margin | Free cash flow | Change vs. current | Implied market cap |
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| Metric | Value | Notes |
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Faiq Ur Rahman is a web designer, digital product developer, and founder of Toolraxy, a growing platform of web-based calculators and utility tools. He specializes in building structured, user-friendly tools focused on health, finance, productivity, and everyday problem-solving.
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Free cash flow is the money a business produces after paying for everything it needs to keep running. It’s what’s left over for shareholders, debt repayment, or acquisitions. Companies can report healthy net income while burning through cash. FCF exposes that gap.
This calculator builds FCF from the ground up using the same inputs you’d pull from a cash flow statement. You enter revenue, net income, D&A, working capital changes, CapEx, and optional balance sheet data. The tool handles the arithmetic and shows you not just the FCF number but whether it’s strong or weak relative to your industry. It also converts FCF into yield and valuation multiples so you can compare companies of different sizes. No spreadsheet setup required.
Select your currency from the dropdown. Every input and result uses that symbol.
Enter total revenue and net income for the period you’re analyzing.
Add depreciation and amortisation. This is a non-cash expense you add back.
Input the change in working capital. Positive values mean cash got tied up in receivables or inventory.
Enter capital expenditures. This is the cash spent on property, equipment, and intangibles.
Fill in market capitalisation, total debt, and cash if you want yield and valuation metrics.
Pick an industry profile to see how your FCF margin stacks up against sector norms.
Hit Calculate. The tool updates every table and metric immediately.
The core formula is straightforward. Free cash flow equals operating cash flow minus capital expenditures. Operating cash flow itself starts with net income, adds back non-cash charges like D&A, and adjusts for working capital movements .
Formula: FCF = (Net Income + D&A − Increase in Working Capital + Other Non-Cash Items) − CapEx
A company with $800,000 in net income, $300,000 in D&A, a $50,000 working capital increase, and $400,000 in CapEx ends up with $650,000 in free cash flow. That’s the cash the business actually generated.
The calculator also computes FCF margin (FCF ÷ revenue), FCF yield (FCF ÷ market cap), and EV/FCF (enterprise value ÷ FCF). Enterprise value adds debt and subtracts cash from market cap . Negative FCF is handled without drama. The tool just flags it and tells you what it means.
Take a mid-sized equipment manufacturer. Revenue: $4,200,000. Net income: $610,000. D&A: $240,000. Working capital increased by $85,000. CapEx: $380,000. Market cap: $9,500,000. Debt: $1,800,000. Cash: $900,000.
Operating cash flow: $610,000 + $240,000 − $85,000 = $765,000. Free cash flow: $765,000 − $380,000 = $385,000.
FCF margin: 9.17%. FCF yield: 4.05%. EV: $10,400,000. EV/FCF: 27.01×.
Against the Industrials benchmark (6%–11% FCF margin), this company lands in the middle of the pack. Nothing alarming. Nothing exceptional either.
Start with net income. Add back D&A. Adjust for working capital changes (subtract increases, add decreases). Add any other non-cash items. Subtract CapEx. The result is FCF. This calculator does all of that from the inputs you provide.
SaaS businesses typically target 15% to 35% FCF margins. The best ones exceed 30%. Anything below 10% suggests the company is either investing heavily in growth or struggling to convert revenue into cash.
Net income includes non-cash items and accrual accounting choices. FCF measures actual cash movement. A company can report profits while running out of money. FCF doesn’t lie about liquidity in the same way.
P/E uses equity value and accounting earnings. EV/FCF uses total enterprise value (equity plus debt minus cash) and actual cash generation. EV/FCF accounts for leverage and is harder to manipulate through accounting .
Yes, if the negative FCF comes from deliberate growth investment. Amazon ran negative or minimal FCF for years while building infrastructure. The question is whether the spending creates future cash returns. Negative FCF from operational weakness is a different story .
Cash conversion ratio measures how much of reported profit turns into actual cash. FCF divided by net income is one version. A ratio above 1 means you’re converting more than 100% of earnings into cash. Below 1 signals working capital problems or heavy reinvestment .
Quarterly for public companies, using trailing twelve-month figures for stability. Annual FCF alone can be misleading if the business is seasonal or had one-time events. This calculator works with whatever period you input.
No. SBC is a real cost but it’s non-cash. The calculator focuses on the standard FCF definition used by most analysts and indices. If you want to treat SBC as an expense, subtract it from the net income figure before entering it.
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