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💰 Operating Cash Flow Calculator

Estimate the cash your business’s core operations actually generate using the operating cash flow formula.

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What Is Operating Cash Flow?

Operating Cash Flow (OCF) shows how much cash a company’s normal business activities generate, separate from investing or financing activities. It’s a key indicator of whether a business can sustain and grow operations without relying on outside funding.

The Formula

OCF = Operating Income − Taxes + Depreciation & Amortization − Increase in Working Capital. Depreciation is added back because it’s a non-cash expense, while a rise in working capital (more tied up in receivables or inventory) reduces available cash.

  • A positive, growing OCF generally signals healthy operations.
  • OCF can differ significantly from net income due to non-cash items and timing of cash receipts/payments.

This tool is intended for general financial planning and educational purposes, not as formal accounting or investment advice.

Last reviewed August 2026