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Business & Accounting

Cash Flow Calculator

Calculate operating cash flow by the indirect method and free cash flow after capital expenditure.

Your inputs

Results

Free cash flow

$83,000.00

Operating cash flow
$113,000.00
Cash used by working capital
$7,000.00

✓Exact calculation — rounded only for display

What this calculator does

Profit is not cash. The indirect method starts from net income, adds back non-cash charges and adjusts for working capital to show the cash operations actually generated.

Formula and method

OCF = net income + D&A − increase in receivables − increase in inventory + increase in payables Free cash flow = OCF − capital expenditure

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Net income: 100000 (any currency)
  • Depreciation and amortization: 20000 (any currency)
  • Increase in receivables (negative if decreased): 10000 (any currency)
  • Increase in inventory (negative if decreased): 5000 (any currency)
  • Increase in payables (negative if decreased): 8000 (any currency)
  • Capital expenditure: 30000 (any currency)

Results

  • Free cash flow: 83,000
  • Operating cash flow: 113,000
  • Cash used by working capital: 7,000

How to read the results

Persistent negative free cash flow means the business relies on outside funding.

Assumptions and limitations

  • Enter decreases as negative numbers.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Why does an increase in receivables reduce cash?

Sales were recorded as revenue but the cash has not been collected yet.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy