Inputs & Results
Edit any cell below. Click Calculate FCFE to update results and chart. All amounts are in your preferred currency. Negative numbers may be entered with a leading minus.
| Year | Net Income | Depreciation & Amortization | Change in Working Capital (ΔWC) | Capital Expenditures (CapEx) | Net Borrowing | FCFE |
|---|---|---|---|---|---|---|
| 2021 | 120000 | 25000 | -10000 | -40000 | 5000 | 0 |
| 2022 | 135000 | 28000 | -8000 | -45000 | 2000 | 0 |
| 2023 | 150000 | 30000 | -12000 | -52000 | -1000 | 0 |
| 2024 | 162000 | 32000 | -15000 | -60000 | 3000 | 0 |
| 2025 | 175000 | 35000 | -17000 | -65000 | 6000 | 0 |
| Total FCFE | 0 | |||||
FCFE Trend
Tip: Use the example dataset to see how inputs affect FCFE over time. The chart updates after calculation.
Example Dataset (Reference)
This static table mirrors the default inputs above. Click Load Example at the top to overwrite current inputs with these values.
| Year | Net Income | Depreciation & Amortization | Change in Working Capital (ΔWC) | Capital Expenditures (CapEx) | Net Borrowing |
|---|---|---|---|---|---|
| 2021 | 120,000 | 25,000 | -10,000 | -40,000 | 5,000 |
| 2022 | 135,000 | 28,000 | -8,000 | -45,000 | 2,000 |
| 2023 | 150,000 | 30,000 | -12,000 | -52,000 | -1,000 |
| 2024 | 162,000 | 32,000 | -15,000 | -60,000 | 3,000 |
| 2025 | 175,000 | 35,000 | -17,000 | -65,000 | 6,000 |
Formula Used
The calculator applies the standard definition of Free Cash Flow to Equity (FCFE):
FCFE = Net Income + Depreciation&Amortization − Capital Expenditures − ΔWorking Capital + Net Borrowing
- Net Income: Profit after taxes attributable to common equity holders.
- Depreciation & Amortization (D&A): Non‑cash charges added back.
- Capital Expenditures (CapEx): Cash spent on fixed assets (enter as negative if cash outflow).
- ΔWorking Capital: Increase reduces cash; decrease releases cash. Enter positive if WC increased (uses cash) and negative if it decreased (sources cash).
- Net Borrowing: Debt issued minus debt repaid. Positive adds cash to equity holders; negative indicates repayments.
Alternative relationships: FCFE = FCFF − Interest × (1 − Tax Rate) + Net Borrowing where FCFF is free cash flow to the firm.
How to Use This Calculator
- Edit the Year and financial inputs directly in the table.
- Use Load Example to reset the grid with ready‑made values.
- Click Calculate FCFE to recompute per‑row FCFE, totals, and update the trend chart.
- Use Add Row to include more years. Use Clear All to start fresh.
- Export results with Download CSV for spreadsheets, or Download PDF for a shareable report snapshot (table + chart).
- Interpret numbers relative to your business context; consider normalization for non‑recurring items before analysis.
FAQs
Use FCFE when valuing equity directly or analyzing cash available to common shareholders after debt flows. Use FCFF when valuing the entire firm irrespective of capital structure.
If included in net income, it is a non‑cash expense similar to D&A, but it dilutes ownership. Analysts often adjust valuation multiples instead of adding it back as pure cash.
Enter CapEx as negative for purchases and positive for disposals. Enter ΔWC positive when working capital increases (uses cash) and negative when it decreases (releases cash).
Yes. Heavy reinvestment, rising working capital, or debt repayments can drive FCFE below zero even for profitable companies. Persistent negatives may indicate funding needs.
Dividends are a use of equity cash but not required to compute FCFE. FCFE approximates cash available to pay dividends, buy back stock, or retain for growth.
Taxes are already reflected in net income. If building FCFE from FCFF, subtract after‑tax interest (Interest × (1 − Tax Rate)) and then add net borrowing to reconcile to equity cash flow.