Free Cash Flow Formula: Excel, DAX, Calculator & Example

Simple formula

Operating Cash Flow - Capital Expenditures

The formula uses these inputs:

Operating Cash Flow: enter your value in the calculator or spreadsheet.
Capital Expenditures: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=B2-C2

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=B2-C2

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

Free Cash Flow =
[Operating Cash Flow] - [Capital Expenditures]

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS free_cash_flow
FROM kpi_data;

Free Cash Flow calculator

Operating Cash Flow Capital Expenditures

Result—

How to interpret Free Cash Flow

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

Mixing different time periods in the numerator and denominator.
Using totals that do not match the KPI definition used by your company.
Comparing results across teams or industries without context.

Related KPI formulas

Frequently asked questions

What is the Free Cash Flow formula?

The common Free Cash Flow formula is: Operating Cash Flow - Capital Expenditures.

How do you calculate Free Cash Flow in Excel?

Use this Excel formula pattern: =B2-C2. Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.

Free Cash Flow Formula

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