Cash Flow Calculator
Calculate operating, investing, and financing cash flows to assess business liquidity.
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How to use this calculator
Operating CF adds back non-cash charges (depreciation) and working capital changes to net income. Investing CF nets capital expenditures against asset sale proceeds. Financing CF nets new capital raised against repayments.
- 1
Enter your net income, depreciation, and any change in working capital for operating cash flow.
- 2
Add capital expenditures and asset sale proceeds for investing cash flow, and debt movements for financing cash flow.
- 3
Read the net cash flow, free cash flow, and each section of the cash flow statement.
Frequently asked questions
What is free cash flow?
Free cash flow (FCF) is operating cash flow minus capital expenditures. It represents the cash a business generates after maintaining and expanding its asset base — a key indicator of financial health.
Why is depreciation added back to net income?
Depreciation is a non-cash accounting expense that reduces net income but does not involve an actual cash outflow. Adding it back converts accrual-based net income to a cash-based figure.
What does a negative investing cash flow mean?
A negative investing cash flow usually means the business is spending on capital expenditures (equipment, property). This is normal for growing businesses and not necessarily a warning sign.
Cash Flow Calculator — Operating, Investing & Financing
Why cash flow matters more than profit
A business can be profitable on paper while running out of cash. This happens when profits are tied up in unpaid receivables or inventory. Cash flow analysis shows the actual movement of money in and out of the business, which determines whether it can pay its bills, invest in growth, and survive downturns.
Understanding the three sections of cash flow
Operating cash flow shows the cash generated by core business activities. Investing cash flow reflects long-term asset purchases and sales. Financing cash flow tracks money raised from or returned to investors and lenders. A healthy business generates strong operating cash flow and uses it to fund strategic investments.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →