FCFF calculator
EBIT of 500,000 taxed at 0.25 gives NOPAT of 375,000; add 80,000 of depreciation, subtract 120,000 of capex and a 30,000 rise in working capital, and FCFF is 305,000. Free in your browser.
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Worked example
- Ebit
- 500,000
- Tax rate
- 0.25
- Depreciation
- 80,000
- Capital expenditures
- 120,000
- Working capital change
- 30,000
- Nopat
- 375,000
- Fcff
- 305,000
Free cash flow to the firm, often abbreviated FCFF, is the cash that operations generate for every capital provider after the tax authority, the capital-expenditure budget, and the working-capital cycle have taken their share. Equity holders and lenders both have a claim on that cash, which is why a WACC-based enterprise-value model discounts FCFF rather than a levered free-cash-flow-to-equity figure. This free cash flow to firm calculator accepts five finite numbers that already share one period and one currency: EBIT, a tax rate as a decimal fraction between zero and one inclusive, depreciation as the non-cash charge added back, capital expenditures as a typically non-negative spend, and the period change in working capital. It returns NOPAT, FCFF, the echoed inputs, and the identity used. Missing, empty, or non-finite fields fail the same way.
How free cash flow to the firm turns EBIT into unlevered cash
Free cash flow to the firm is the unlevered cash that operations produce for every provider of capital after tax, after the capital expenditures that keep and grow the productive asset base, and after the cash absorbed or released by the working-capital cycle. EBIT is earnings before interest and taxes for the period in one currency — operating profit before the capital structure has been applied. Sending 25 is rejected because 25 lies outside 0 to 1, which also catches the usual percent-versus-fraction mix-up.
Depreciation is the non-cash charge added back; callers who report combined depreciation and amortization on one line should send that combined figure here. Capital expenditures is the cash invested in long-lived assets, sent as a typically non-negative spend. If the cash-flow statement already prints capex as a negative outflow, send the absolute value so this subtraction does not add the spend back.
Working_capital_change is the period increase in net working capital: a positive change is a use of cash and reduces FCFF; a negative change (working capital released) is a source of cash and raises FCFF. Five hundred thousand of EBIT, a tax rate of 0.25, eighty thousand of depreciation, one hundred twenty thousand of capital expenditures, and a thirty thousand increase in working capital print NOPAT of three hundred seventy-five thousand and FCFF of three hundred five thousand.
Zero EBIT, zero depreciation, zero capex, or a zero working-capital change is a legitimate outcome and is not an error. Negative EBIT is accepted because an operating loss still has an FCFF figure under the textbook identity EBIT times one minus t. This calculator does not discount a forecast, does not compute free cash flow to equity, does not add after-tax interest on top of EBIT (interest was never deducted from EBIT), does not rebuild the statement of cash flows from ledger lines, and does not convert currencies.
You supply five finite numbers that already share one period and one currency; the calculator applies the identity and rounds money results half-up to two decimal places so goldens compare byte-for-byte across runtimes. This is a going-in FCFF from the EBIT identity, not a two-line FCF from cash from operations, not a discounted-cash-flow present value, and not an EBITDA proxy dressed as cash.
Where a free cash flow to firm calculator earns its keep
Operators screening a monthly close use a free cash flow to firm calculator to turn last period's EBIT, tax rate, depreciation, PP&E spend, and working-capital movement into one unlevered cash line before they open a full three-statement model or a multi-year discounted cash flow.
Valuation desks drop filing EBIT, the effective tax rate, depreciation and amortization from the notes, capex from the investing section, and the change in net working capital, then pin that FCFF as the going-in unlevered cash flow beside a WACC-based enterprise-value case rather than treating a single-period identity as a substitute for a discounted forecast plus a terminal lump.
Lenders and credit analysts re-run the same five fields when a year closes or a credit memo asks for cash generation available to all capital providers after reinvestment, then compare FCFF with scheduled debt service and with the two-line free cash flow that starts from cash from operations minus capex.
This is a different search and a different job from free cash flow, which subtracts capex from operating cash flow and does not rebuild NOPAT from EBIT; from free cash flow to equity, which is cash available to common shareholders after after-tax interest and net borrowing; from discounted cash flow, which discounts an explicit forecast plus a terminal value; and from EBITDA, which is an accrual operating-profit subtotal that still has to fund tax, capex, and working capital. Failed validation does not consume balance.
What you can do with it
Monthly close before the full cash model
Turn last period's EBIT, tax rate, depreciation, PP&E spend, and working-capital change into one unlevered FCFF line before you open a full three-statement model.
Enterprise-value teasers before a full DCF
Drop filing EBIT, the tax rate, D&A, notes capex, and ΔNWC into one going-in FCFF beside a WACC case, without treating the single-period identity as a multi-year present value.
Credit memos and cash to all capital providers
Pin FCFF next to scheduled debt service so lender packs share one unlevered cash figure rather than EBITDA that still has to fund tax, capex, and working capital.
FAQ
How is free cash flow to the firm (FCFF) calculated?
NOPAT is returned as the after-tax EBIT term. Money amounts round half-up to two decimal places.
Is this the same as FCF, FCFE, or DCF?
No. Free cash flow (FCF) is often cash from operations minus capex. Free cash flow to equity is cash to common shareholders after after-tax interest and net borrowing. Discounted cash flow discounts a forecast of future cash flows.
Do I enter the tax rate as a percent or a decimal?
As a decimal between 0 and 1, so 0.25 means a 25% tax rate. Typing 25 is refused because it falls outside that range, which catches the usual mix-up between percents and fractions.
How does working capital change FCFF?
An increase in net working capital ties up cash, so it lowers FCFF. A decrease releases cash and raises it. Enter an increase as a positive number and a release as a negative one.
Why is FCFF used with the WACC?
Because FCFF is the cash available to every provider of capital, lenders and shareholders alike. An enterprise value model therefore discounts FCFF at the weighted average cost of capital rather than discounting the levered FCFE.
Related tools
For developers — API access
Everything on this page is available programmatically. This section is for teams who want to wire it into their own systems; everyone else can just use the tool above.
API endpoint
Prefer to automate it? One authenticated POST creates the task; the result comes back by webhook or a signed link. The same capability also runs here on the web, by email and from Telegram — and soon from our app too.
Call it from your stack
curl -X POST https://api.kit.forhosting.com/fin/free-cash-flow-to-firm \
-H "Authorization: Bearer $KIT_KEY" \
-H "Content-Type: application/json" \
-d '{"ebit":500000,"tax_rate":0.25,"depreciation":80000,"capital_expenditures":120000,"working_capital_change":30000}'const res = await fetch("https://api.kit.forhosting.com/fin/free-cash-flow-to-firm", {
method: "POST",
headers: {
"Authorization": `Bearer ${process.env.KIT_KEY}`,
"Content-Type": "application/json"
},
body: JSON.stringify({
"ebit": 500000,
"tax_rate": 0.25,
"depreciation": 80000,
"capital_expenditures": 120000,
"working_capital_change": 30000
})
});
const { task_id } = await res.json();import os, requests
res = requests.post(
"https://api.kit.forhosting.com/fin/free-cash-flow-to-firm",
headers={"Authorization": f"Bearer {os.environ['KIT_KEY']}"},
json={
"ebit": 500000,
"tax_rate": 0.25,
"depreciation": 80000,
"capital_expenditures": 120000,
"working_capital_change": 30000
},
)
task_id = res.json()["task_id"]<?php
$res = file_get_contents("https://api.kit.forhosting.com/fin/free-cash-flow-to-firm", false, stream_context_create([
"http" => [
"method" => "POST",
"header" => "Authorization: Bearer " . getenv("KIT_KEY") . "\r\nContent-Type: application/json",
"content" => '{"ebit":500000,"tax_rate":0.25,"depreciation":80000,"capital_expenditures":120000,"working_capital_change":30000}',
],
]));
$task = json_decode($res, true);body := bytes.NewBufferString(`{"ebit":500000,"tax_rate":0.25,"depreciation":80000,"capital_expenditures":120000,"working_capital_change":30000}`)
req, _ := http.NewRequest("POST", "https://api.kit.forhosting.com/fin/free-cash-flow-to-firm", body)
req.Header.Set("Authorization", "Bearer "+os.Getenv("KIT_KEY"))
req.Header.Set("Content-Type", "application/json")
res, _ := http.DefaultClient.Do(req)Example request
{
"ebit": 500000,
"tax_rate": 0.25,
"depreciation": 80000,
"capital_expenditures": 120000,
"working_capital_change": 30000
}Example response
{
"task_id": "tsk_a1b2c3d4e5f6a1b2c3d4e5f6",
"type": "fin.free_cash_flow_to_firm",
"status": "queued",
"_links": {
"result": "/tasks/tsk_…/result"
}
}The API is asynchronous: the call returns a task_id immediately and the result arrives by webhook. Polling is capped at 1 req/s per task.
Pricing
Published price — no tokens, no invented credits. A failed task is never charged.
Errors
| HTTP | Code | Meaning |
|---|---|---|
401 | unauthorized | Missing or invalid API key. |
402 | insufficient_balance | Your balance doesn't cover the task price. |
404 | unknown_type | That task type doesn't exist. |
429 | rate_limited | Too many requests. Use the webhook instead of polling. |
Technical notes
A tax rate outside the closed interval from 0 to 1 fails with invalid_input and is not billed.
How free cash flow to the firm turns EBIT into unlevered cash
The identity this calculator uses is fcff equals ebit times one minus tax_rate, plus depreciation, minus capital_expenditures, minus working_capital_change. The tax_rate is a decimal fraction on the closed interval from zero to one: 0.25 means a twenty-five percent tax, not twenty-five.
Input contract, response shape, and error behaviour
Zero and negative money amounts are allowed: an operating-loss year, a period with no PP&E spend, or a working-capital release still produce a finite FCFF rather than an error. POST a JSON body with five required finite numbers that share one period and one currency. ebit is period earnings before interest and taxes; aliases earnings_before_interest_and_taxes, operating_income, and operating_profit map to the same field so a worksheet can keep its column names. tax_rate is the tax rate as a decimal fraction between 0 and 1 inclusive; aliases tax, t, and tax_decimal are accepted. Do not send a percent: 0.21 means twenty-one percent, and 21 is rejected as outside the closed interval. depreciation is the non-cash charge added back, typically period depreciation or combined depreciation and amortization; aliases dep, da, d_and_a, and amortization are accepted. capital_expenditures is the period cash invested in long-lived assets, sent as a typically non-negative spend; aliases capex, cap_ex, and capital_expenditure are accepted. If the investing section already prints capex as a negative outflow, send the absolute value so FCFF equals NOPAT plus depreciation minus spend minus the working-capital change rather than NOPAT plus spend. working_capital_change is the period increase in net working capital; aliases delta_nwc, nwc_change, change_in_nwc, delta_wc, and wc_change map to the same field. Each numeric field may arrive as a JSON number or a numeric string. Missing fields, empty strings, and non-finite values — NaN, Infinity, or text that does not parse as a number — fail with invalid_input naming the field. A tax_rate strictly less than 0 or strictly greater than 1 fails with invalid_input stating that tax_rate must be between 0 and 1 inclusive. Those failures are not billed. On success the body echoes ebit, tax_rate, depreciation, capital_expenditures, and working_capital_change, then reports nopat as EBIT times one minus the tax rate and fcff as nopat plus depreciation minus capital expenditures minus the working-capital change, with money amounts rounded half-up to two decimal places, plus a formula string restating the identity. Example: five hundred thousand of EBIT, tax_rate 0.25, eighty thousand of depreciation, one hundred twenty thousand of capital expenditures, and a thirty thousand working-capital increase yield nopat of three hundred seventy-five thousand and fcff of three hundred five thousand. Pair the JSON with your own rule for which EBIT definition matches the depreciation and capex you send — some models start from EBITDA or from cash from operations plus after-tax interest — because this endpoint applies the EBIT identity to the five numbers you send; it does not rebuild the statement, choose FCFF versus FCFE, discount a forecast, or convert currencies.
Where a free cash flow to firm calculator earns its keep
Keep the five fields finite, keep tax_rate on the closed interval from 0 to 1, pin the rounded FCFF in tests, and you get a reproducible unlevered cash figure for teasers, LMS plugins, and edge workers without standing up a general ledger of your own.
Technical questions
Should tax_rate be a percent or a decimal?
Send tax_rate as a decimal fraction between 0 and 1 inclusive. 0.25 means 25 percent. Sending 25 is rejected because 25 lies outside 0 to 1.
What happens if tax_rate is outside 0 to 1, or a field is missing?
The task fails with invalid_input. tax_rate must be between 0 and 1 inclusive. ebit, tax_rate, depreciation, capital_expenditures, and working_capital_change must each be a finite number. Those failures are not billed.
What does the FCFF calculator cost?
The browser tool is free. API requests use prepaid KIT balance at $0.002 per successful call; invalid input is not billed.