Free Cash Flow to Firm (FCFF) Calculator

Understand how much cash your operations truly create after funding CapEx and working capital, before any financing decisions. Use FCFF to connect operating performance with enterprise value, capital structure choices, and long-term value creation.

By CalcMastery Editorial Team

Free Cash Flow to Firm (FCFF) Calculator

Compute Free Cash Flow to Firm (FCFF) from EBIT, tax rate, depreciation & amortization, capital expenditures, and changes in net working capital. Clean UX with focused inputs, practical scenarios, and a concise What It Means panel.

$

Earnings before interest and taxes for the period. Use operating income from the income statement.

%

Effective tax rate applied to EBIT to estimate after-tax operating profit (NOPAT).

$

Non-cash depreciation and amortization expenses added back because they reduce accounting profit but not cash.

$

Increase in net working capital uses cash and reduces FCFF; a decrease provides cash. Enter increases as positive and decreases as negative.

$

Cash spent on property, plant, equipment, or other long-term operating assets during the period.

Scenarios
Load example profiles to see how FCFF changes for mature, high-growth, and asset-light businesses.
Mature Industrial BusinessHigh-Growth, Heavy ReinvestmentAsset-Light BusinessTurnaround with Negative FCFF

Results

  • Free Cash Flow to Firm (FCFF)$
  • FCFF Health—
  • NOPAT (EBIT × (1 − Tax Rate))$
  • Operating Cash Flow (approx.)$
  • Depreciation & Amortization (D&A)$
  • Change in Net Working Capital$
  • Capital Expenditures (CapEx)$

Enter your inputs above to calculate the results.

What is Free Cash Flow to Firm (FCFF)?

Free Cash Flow to Firm (FCFF) is the after-tax operating cash flow available to all capital providers—both debt and equity—after covering necessary reinvestment in fixed assets and net working capital. It is the core cash flow used in discounted cash flow (DCF) valuation, links directly to enterprise value via the cost of capital, and separates operating performance from financing decisions (leverage, interest expense, dividends, and buybacks).

Formula

FCFF = EBIT × (1 − Tax Rate) + Depreciation & Amortization − CapEx − Delta Net Working Capital

Example

Assume a company reports:

  • EBIT (Operating Income): $300,000
  • Tax Rate: 25%
  • Depreciation & Amortization (D&A): $80,000
  • Capital Expenditures (CapEx): $150,000
  • Increase in Net Working Capital: $20,000

Step 1: Compute after-tax operating income (NOPAT):

NOPAT = 300,000 × (1 − 0.25) = 225,000

Step 2: Apply the FCFF formula:

FCFF = 225,000 + 80,000 − 150,000 − 20,000 = 135,000

An FCFF of $135,000 means the firm generates $135,000 of unlevered free cash flow this period that is available to both debtholders and shareholders, after funding its operating reinvestment needs.

How to Use the Cash Flow to Firm (FCFF) Calculator

Use this calculator to estimate unlevered free cash flow based on operating earnings, taxes, non-cash charges, and reinvestments in CapEx and working capital.

Enter EBIT (Operating Income)

  • Input your latest EBIT from the income statement in the “EBIT (Operating Income)” field; this is profit before interest and taxes.

Set the Tax Rate

  • Enter your effective corporate tax rate (as a percentage) in the “Tax Rate” field so the tool can compute after-tax operating profit (NOPAT).

Add D&A, CapEx, and Change in Net Working Capital

    • Fill in “Depreciation & Amortization (D&A)”, “Capital Expenditures (CapEx)”, and “Change in Net Working Capital”; the calculator then applies
FCFF = EBIT × (1-Tax Rate) + D&A − CapEx − Delta NWC.

Review the Results Table

  • Check the “Results” section to see FCFF, the FCFF Health label, NOPAT, operating cash flow approximation, and the components you entered for a clear breakdown.

Use the Summary Card and Scenarios

  • Read the bottom summary card showing “Free Cash Flow to Firm (FCFF)” and its health assessment, and optionally adjust inputs (or use predefined scenarios if available) to compare how different assumptions change FCFF.

Frequently Asked Questions

How do I calculate FCFF using this calculator’s inputs (EBIT, tax rate, D&A, CapEx, and change in net working capital)?

Enter EBIT and your effective tax rate; the calculator computes NOPAT as

NOPAT = EBIT × (1-Tax Rate)

then applies

FCFF = EBIT × (1-Tax Rate) + D&A − CapEx − Delta NWC

where D&A is added back, CapEx and the change in net working capital are subtracted.

For “Change in Net Working Capital”, should I input increases as positive or negative?

Treat an increase in net working capital as a positive number (it uses cash and reduces FCFF) and a decrease as a negative number (it releases cash and boosts FCFF).

How should I interpret the FCFF Health label (e.g., “Moderate FCFF vs Reinvestment”)?

The label compares your FCFF to the level of reinvestment implied by CapEx and working capital: higher FCFF relative to reinvestment means more cash available to debt and equity holders, while a low or thin FCFF means most cash is tied up funding operations and growth.

What’s the practical difference between FCFF from this tool and free cash flow to equity (FCFE)?

FCFF here is unlevered free cash flow available to all capital providers before interest and debt repayments; FCFE adjusts FCFF for after-tax interest and net borrowing to show only the cash left for equity holders.

Sources & Methodology