How to use this calculator
- Enter net income, depreciation and amortization, capital expenditure, increase in working capital, net borrowing.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Net borrowing is new debt minus principal repayments; avoid including financing liabilities in operating working capital.
Worked example
With net income = 40000, depreciation and amortization = 10000, capital expenditure = 20000, increase in working capital = 5000, net borrowing = 15000, fcfe is approximately 40000.
What the result means
Positive net borrowing increases cash available to equity but does not create operating value by itself.
Common questions
How should I interpret fcfe?
Positive net borrowing increases cash available to equity but does not create operating value by itself.
What should I check before using this result?
Net borrowing is new debt minus principal repayments; avoid including financing liabilities in operating working capital.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.