Free Cash Flow Calculator

A free cash flow calculator works out how much cash a business has left over after it has paid to run operations and to maintain or grow its asset base. You enter operating cash flow and capital expenditure, and the tool returns free cash flow, which is operating cash flow minus capex. This figure matters because it represents the cash genuinely available to repay debt, pay dividends, buy back shares, or reinvest, rather than cash that is already committed to keeping the business running. Investors and lenders watch free cash flow closely, since it is harder to massage than reported earnings and gives a cleaner read on financial health. A company can post healthy profits yet generate little free cash if it constantly pours money into equipment, property, or technology, so the relationship between the two numbers tells a story on its own. Owners and finance teams use the measure to judge whether the business can fund its plans from its own resources or whether it needs to borrow or raise capital. A few points help you use it well. Be clear about which capex you are including, since maintenance capex keeps the lights on while growth capex expands the business, and separating them gives a sharper view. Look at free cash flow over several periods rather than a single one, because large one off purchases can distort a single year. Compare it against debt repayments due so you know the business can comfortably service what it owes. Use this tool to test how a planned investment changes the picture. All figures are in New Zealand dollars and the result is an estimate to support your own analysis.

FCF = operating cash flow - capital expenditure. Estimate only, not financial or tax advice.