{
  "id": "cash-flow",
  "version": "682d657b4e97",
  "status": "published",
  "name": "Cash Flow Calculator",
  "question": "What is my cash flow?",
  "summary": "Computes operating cash flow from net income or operating income and free cash flow after capital expenditures, for a business over one period.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/cash-flow-calculator",
  "markdown": "https://www.acalculator.org/finance/cash-flow-calculator.md",
  "kind": "function",
  "method": "Operating cash flow = net income + depreciation and amortization − increase in working capital; or operating income + depreciation and amortization − taxes − increase in working capital; or typed. Free cash flow = operating cash flow − capital expenditures.",
  "assumptions": [
    "All amounts cover the same period.",
    "An increase in working capital uses cash and is taken off; a decrease frees cash and is added.",
    "Arithmetic is exact on the typed decimals; money shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "from": {
        "title": "Operating cash flow",
        "description": "Work it out from net income or operating income, or type it from a cash flow statement.",
        "type": "string",
        "enum": [
          "net",
          "operating",
          "typed"
        ]
      },
      "ni": {
        "title": "Net income",
        "description": "Profit after all expenses, interest and taxes. Negative for a loss.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "ebit": {
        "title": "Operating income",
        "description": "Earnings before interest and taxes (EBIT).",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "tax": {
        "title": "Taxes paid",
        "description": "Income taxes for the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "da": {
        "title": "Depreciation and amortization",
        "description": "Non-cash charges taken off to reach income, added back here.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "nwc": {
        "title": "Increase in working capital",
        "description": "The rise in current operating assets minus current operating liabilities. Negative for a decrease.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "ocf": {
        "title": "Operating cash flow",
        "description": "Net cash from operating activities.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "capex": {
        "title": "Capital expenditures",
        "description": "Cash spent on property, plant and equipment.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "fcf": {
      "label": "Free cash flow",
      "description": "Operating cash flow minus capital expenditures.",
      "format": "money"
    },
    "operatingCash": {
      "label": "Operating cash flow",
      "description": "Cash from the business’s day-to-day operations.",
      "format": "money"
    },
    "capexOut": {
      "label": "Capital expenditures",
      "description": "Cash spent on long-term assets.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "from": "net",
      "ni": 35000,
      "ebit": 43000,
      "tax": 6000,
      "da": 3600,
      "nwc": 0,
      "ocf": 53600,
      "capex": 13600
    },
    "outputs": {
      "fcf": 25000,
      "operatingCash": 38600,
      "capexOut": 13600
    },
    "text": "Operating cash flow of $38,600.00 minus $13,600.00 of capital spending leaves free cash flow of $25,000.00."
  },
  "examples": [
    {
      "given": {
        "from": "typed",
        "ocf": 53600,
        "capex": 13600
      },
      "expect": {
        "fcf": 40000
      },
      "source": "OpenStax, Principles of Finance, 5.6 Operating Cash Flow and Free Cash Flow to the Firm (FCFF) (free cash flow = operating cash flow − capital expenditures; Clear Lake Sporting Goods: 53,600 − 13,600 = 40,000). https://openstax.org/books/principles-finance/pages/5-6-operating-cash-flow-and-free-cash-flow-to-the-firm-fcff: 53,600 − 13,600 = 40,000"
    },
    {
      "given": {
        "from": "net",
        "ni": 35000,
        "da": 3600,
        "nwc": -15000,
        "capex": 13600
      },
      "expect": {
        "operatingCash": 53600,
        "fcf": 40000
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method (net income, plus depreciation, minus increases in current operating assets, plus increases in current operating liabilities). https://openstax.org/books/principles-financial-accounting/pages/16-3-prepare-the-statement-of-cash-flows-using-the-indirect-method; OpenStax, Principles of Finance, 5.6 Operating Cash Flow and Free Cash Flow to the Firm (FCFF) (free cash flow = operating cash flow − capital expenditures; Clear Lake Sporting Goods: 53,600 − 13,600 = 40,000). https://openstax.org/books/principles-finance/pages/5-6-operating-cash-flow-and-free-cash-flow-to-the-firm-fcff; hand calculation in content.mdx: 35,000 + 3,600 + 15,000 = 53,600; 53,600 − 13,600 = 40,000"
    },
    {
      "given": {
        "from": "operating",
        "ebit": 43000,
        "tax": 6000,
        "da": 3600,
        "nwc": 2500.5,
        "capex": 20000
      },
      "expect": {
        "operatingCash": 38099.5,
        "fcf": 18099.5
      },
      "source": "OpenStax, Principles of Finance, 5.6 Operating Cash Flow and Free Cash Flow to the Firm (FCFF) (free cash flow = operating cash flow − capital expenditures; Clear Lake Sporting Goods: 53,600 − 13,600 = 40,000). https://openstax.org/books/principles-finance/pages/5-6-operating-cash-flow-and-free-cash-flow-to-the-firm-fcff (operating cash flow = operating income + depreciation − taxes, less the rise in working capital); hand calculation in content.mdx: 43,000 + 3,600 − 6,000 − 2,500.50 = 38,099.50"
    },
    {
      "given": {
        "from": "net",
        "ni": -8000,
        "da": 5000,
        "nwc": 1000,
        "capex": 4000
      },
      "expect": {
        "operatingCash": -4000,
        "fcf": -8000
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method (net income, plus depreciation, minus increases in current operating assets, plus increases in current operating liabilities). https://openstax.org/books/principles-financial-accounting/pages/16-3-prepare-the-statement-of-cash-flows-using-the-indirect-method; hand calculation in content.mdx: −8,000 + 5,000 − 1,000 = −4,000; −4,000 − 4,000 = −8,000"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 5.6 Operating Cash Flow and Free Cash Flow to the Firm (FCFF): operating cash flow from operating income, depreciation, taxes and working capital; free cash flow = operating cash flow − capital expenditures (Clear Lake Sporting Goods: 53,600 − 13,600 = 40,000). https://openstax.org/books/principles-finance/pages/5-6-operating-cash-flow-and-free-cash-flow-to-the-firm-fcff (retrieved 2026-10-05)",
    "OpenStax, Principles of Accounting, Volume 1, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method: net income adjusted for depreciation and changes in current operating assets and liabilities. https://openstax.org/books/principles-financial-accounting/pages/16-3-prepare-the-statement-of-cash-flows-using-the-indirect-method (retrieved 2026-10-05)"
  ],
  "related": [
    "ebitda",
    "npv",
    "payback-period",
    "business-valuation"
  ],
  "changelog": []
}