📈 FCFE Calculator
Estimate the cash left over for shareholders after a company covers its expenses, investments, debt payments, and reinvestment needs.
What is FCFE?
Free Cash Flow to Equity (FCFE) measures the cash available to a company’s common shareholders after all operating expenses, reinvestment in the business (capital expenditures and working capital), and debt-related cash flows have been accounted for. Analysts often use FCFE in equity valuation models as an alternative to dividends, since it represents the maximum cash that could theoretically be paid out to shareholders.
The formula
This calculator uses the standard formula: FCFE = Net Income + Depreciation & Amortization − Capital Expenditures − Change in Working Capital + Net Borrowing. Net income comes from the income statement, while depreciation, capital expenditures, and working capital changes come from the cash flow statement. Net borrowing is new debt issued minus debt repaid during the period; enter it as a negative number if the company paid down more debt than it raised.
This tool is for general financial education and planning purposes only and is not investment or accounting advice. Always confirm figures using a company’s audited financial statements.