Calculate Free Cash Flow to Firm from operating cash flow, taxes, working capital and investments. Use FCFF for DCF and enterprise value analysis.
Use this FCFF calculator to estimate Free Cash Flow to Firm from operating cash flow, expenses, taxes, working capital changes, and investment outflows.
The calculator uses the formula FCFF = OCF - E - T - ΔNWC - ΔI and can reverse solve a missing input when the other cash-flow values are known.
FCFF is one of the core cash-flow metrics used in DCF valuation because it measures the cash available to all capital providers before debt payments and equity distributions. It is also a common input when you want to estimate net present value from projected operating cash flows.
This calculator also works in reverse, so you can solve for a missing input such as operating cash flow, taxes, working capital change, or investment change when the other values are known. After estimating FCFF, many analysts move on to NPV, IRR, or WACC to judge whether the project creates value.
Free Cash Flow to Firm (FCFF)
Operating Cash Flow (OCF) |
1000.00 |
Expenses (E) |
200.00 |
Taxes (T) |
125.00 |
Change in Net Working Capital (ΔNWC) |
150.00 |
Change in Investments (ΔI) |
150.00 |
FCFF FAQ
What is FCFF?
FCFF stands for Free Cash Flow to Firm. It measures the cash generated by a business that is available to all capital providers after operating costs, taxes, working capital needs, and investment outflows are considered.
How is FCFF used in valuation?
FCFF is commonly used in discounted cash flow (DCF) analysis. Because FCFF is a pre-financing cash flow, it is typically discounted using WACC to estimate enterprise value.
What is the formula used in this calculator?
This calculator uses FCFF = OCF - E - T - ΔNWC - ΔI, where operating cash flow is adjusted for expenses, taxes, changes in net working capital, and changes in investment.
What does a negative FCFF mean?
A negative FCFF means the business is using more cash than it is generating after reinvestment and operating needs. That can be normal for a growing company, but it should be interpreted in context.
What is the difference between FCFF and FCFE?
FCFF measures cash available to all providers of capital, while FCFE measures cash available only to equity holders after debt-related cash flows are considered.
