Free cash flow made visible. UFCF to equity.

Project the cash your business actually frees up: NOPAT, depreciation, CAPEX and working-capital movements build to unlevered free cash flow, then debt service takes it to levered FCF — automated, fully formula-linked Excel, with tax and loss carryforward applied.

⚡ Build My FCF Forecast Free — free (requires JavaScript)

A free cashflow (FCF) forecasting model is a financial projection tool that calculates the cash a business generates after operating expenses, working-capital changes and capital expenditure (CAPEX). It bridges accounting profit (EBITDA) down to the actual cash available to investors and debt holders.

FCFF = EBIT × (1 − Tax Rate) + D&A − Δ Working Capital − CAPEX · FCFE = FCFF − Interest × (1 − Tax) − Net Debt Repayment

Bridging NOPAT to Unlevered Free Cash Flow (FCFF)

Unlevered free cash flow (FCFF) is the cash available to all capital providers before any financing. It is the bridge from accounting profit to real cash, and the input to an enterprise-value DCF.

FCFF = NOPAT + D&A − CAPEX − Δ Working Capital · from EBITDA: FCFF ≈ EBITDA − cash taxes − Δ WC − CAPEX

Start from EBIT, tax it to NOPAT, add back depreciation and amortisation (non-cash), then subtract capital expenditure and the increase in working capital. Coming from EBITDA, the shortcut is EBITDA less cash taxes, less the working-capital increase, less CAPEX. The step analysts most often skip — the working-capital increase — is exactly what quietly overstates cash for a growing business.

EasyFinancialModels derives the full bridge line by line from your operating assumptions, so every figure between profit and free cash flow is a live, auditable Excel formula.

Free cash flow from EBITDA → · What is free cash flow (UFCF vs LFCF) →

Factoring maintenance vs. growth CAPEX

Not all CAPEX is equal. Maintenance CAPEX sustains the existing asset base and roughly tracks depreciation; growth CAPEX funds new capacity and is capitalised and depreciated over its own useful life. Conflating them distorts free cash flow.

Maintenance CAPEX ≈ D&A of existing assets · Growth CAPEX → capitalised, depreciated over useful life

The model separates primary and secondary capital expenditure, each with its own useful life and depreciation start period, feeding a straight-line schedule and net book value on the balance sheet. Charging CAPEX against free cash flow when it is spent — not when it is depreciated — is what makes the forecast honest: a capital-intensive year shows the real cash hit even though the P&L only sees a slice of depreciation.

This distinction is what drives free-cash-flow conversion: software businesses convert most of EBITDA to cash because growth CAPEX is light, while infrastructure converts far less.

Free cash flow conversion: what's a good rate →

Automating tax-loss carryforward (NOL) schedules

Net operating losses (NOLs) from loss-making years carry forward to shelter future taxable profit, cutting cash tax and lifting free cash flow in the recovery period. Ignoring them overstates tax and understates FCF for any business with early losses.

Taxable Income (after NOL) = max(0, Pre-tax Profit − NOL b/f) · Cash Tax = Taxable Income (after NOL) × Tax Rate

A dedicated tax schedule tracks the loss pool: it accumulates losses in down years, then applies them against taxable profit as the business recovers, so cash tax only starts once cumulative profits absorb the carried-forward losses. Tax auto-fills from your selected country and stays editable.

For a startup or a turnaround, this single mechanic materially changes the free-cash-flow profile of the early recovery years — which is exactly why an institutional model automates it rather than applying a flat tax rate.

Why free cash flow beats profit →

Deriving Levered Free Cash Flow (FCFE) via debt schedules

Levered free cash flow (FCFE) is what remains for equity holders after debt service. The bridge from unlevered to levered FCF runs through the debt schedule — interest, principal and any new borrowing.

FCFE = FCFF − Interest × (1 − Tax) + Net Borrowing − Principal Repayment

Enter debt principal, rate, tenor, grace period and type, and the model builds a full schedule: drawdown, interest, scheduled repayment and closing balance, with an interest coverage and debt-service-coverage view. It deducts after-tax interest and net repayments from unlevered free cash flow to reach the cash genuinely available to equity.

That FCFF-to-FCFE distinction is why PE, M&A and lending professionals rely on a free cash flow model rather than a simple operating-cash view: FCFF underpins enterprise-value DCF, while FCFE and the coverage ratios drive debt capacity and equity returns.

Unlevered vs levered free cash flow →

Integrity checks and methodology

The model is engineered to institutional audit standards: it dynamically checks the balance sheet and cash adequacy before you download, so the free cash flow you present is internally consistent and defensible.

Cells follow the practitioner colour convention — blue inputs, black formulas, green cross-sheet links — and the three statements stay fully linked so profit, cash flow and the balance sheet always reconcile. Before download, an Error Check sheet runs live PASS/FAIL tests: the balance sheet must balance every period, cash adequacy is checked, and the tax and debt schedules must tie.

These are the same controls a Financial Controller applies before a number leaves the finance function — the reason the output stands up in a data room rather than reading as a marketing spreadsheet.

Full modelling methodology →

Pricing

Build, preview and download free up to 3 years. Models from 5 to 25 years are $19.98 per model download — no subscription.

Frequently asked questions

How do you bridge EBITDA to Unlevered Free Cash Flow?

Bridge EBITDA to unlevered free cash flow by subtracting cash taxes, the increase in working capital and capital expenditure: FCFF ≈ EBITDA − cash taxes − Δ working capital − CAPEX. The precise version starts from EBIT: FCFF = EBIT × (1 − tax) + D&A − Δ working capital − CAPEX. EasyFinancialModels runs this bridge automatically, with every step a live Excel formula you can audit.

What is the difference between Levered and Unlevered Free Cash Flow?

Unlevered free cash flow (FCFF) is the cash available to all capital providers before any debt service — the input to an enterprise-value DCF. Levered free cash flow (FCFE) is what remains for equity holders after interest, principal repayments and net borrowing: FCFE = FCFF − after-tax interest − net debt repayment. This tool derives and reports both, via a full debt schedule.

How do tax loss carryforwards (NOLs) impact a free cash flow forecast?

Net operating losses carried forward from loss-making years offset taxable profit in later years, reducing cash tax and therefore increasing free cash flow during the recovery period. Omitting NOLs overstates tax and understates FCF for any business with early losses. EasyFinancialModels applies NOL carryforward automatically in a dedicated tax schedule, so cash tax only begins once cumulative profits absorb the losses.

What is free cash flow (FCF)?

Free cash flow is the cash a business generates after operating costs, tax and the investment needed to sustain it (CAPEX and working capital) — the cash genuinely available to lenders and shareholders. This tool forecasts it period by period in a linked Excel model.

How do I calculate free cash flow from EBITDA?

EBITDA − cash taxes − CAPEX − increase in working capital ≈ unlevered free cash flow. The model runs the precise version — NOPAT + D&A − CAPEX − ΔWC — with every step visible as an Excel formula you can audit.

What is the difference between unlevered and levered free cash flow?

Unlevered FCF (UFCF) is before any debt service — cash to all capital providers. Levered FCF is what's left for shareholders after interest and principal repayments. The forecast shows the bridge from one to the other via the debt schedule.

Why does free cash flow matter more than profit?

Profit is an opinion shaped by accruals; cash pays salaries and debt. A profitable company that ties up cash in receivables, stock and CAPEX can still run dry — the FCF forecast exposes exactly when and why.

Is this free cash flow template really free?

Yes — a full 3-year FCF forecasting model downloads free with just your email. Longer horizons (5 to 25 years, monthly, quarterly or annual) are $19.98 per model download, no subscription.

How does working capital affect free cash flow?

Every extra day customers take to pay, or stock sits unsold, consumes cash before it appears in profit. Enter receivable, inventory and payable days (DSO/DIO/DPO) and the model deducts the working-capital increase from FCF automatically each period.

What is FCF conversion and what's a good rate?

FCF conversion is free cash flow as a share of EBITDA — how much of your earnings turn into cash. Software businesses often convert 60–80%; capital-intensive ones far less. The forecast lets you read conversion straight off the linked statements.

Can I forecast free cash flow monthly?

Yes — Monthly, Quarterly or Annual for 3 to 25 years. Monthly FCF is ideal for runway and covenant monitoring; annual growth converts geometrically so periods compound to exactly your stated annual rate.

How do I forecast CAPEX for a free cash flow model?

Split it into growth CAPEX (new capacity, entered per item with useful life) and maintenance CAPEX (a % of the asset base). The model depreciates each correctly and charges both against free cash flow when spent, not when depreciated.

Does the model include tax and loss carryforwards?

Yes. Tax auto-fills from your country, stays editable, and a dedicated schedule applies NOL carryforward — so early losses shelter later profits and your FCF isn't overtaxed in recovery years.

What's the difference between free cash flow and operating cash flow?

Operating cash flow stops after working capital; free cash flow also deducts CAPEX — the investment needed to keep operating. FCF is the stricter, investor-preferred measure, and the model reports the full bridge.

How is free cash flow used in valuation?

Unlevered FCF is the input to DCF valuation — discount it at WACC and add a terminal value. Build your FCF forecast here, and if you need the valuation layer, our DCF Valuation Model runs the same engine with WACC, terminal value and sensitivity tables.

Can startups use a free cash flow forecast?

Absolutely — for startups FCF is runway: it shows the burn after real cash costs and working capital, and when cumulative cash turns positive. Pick the Startup template and stress-test collections and hiring against the closing-cash line.

What does negative free cash flow mean?

It means the business consumed more cash than it generated — normal for growth phases, dangerous if unplanned. The forecast shows the peak funding need so you can raise or borrow before the gap, not after.

How do lenders use free cash flow?

Debt capacity is priced off FCF: interest coverage and repayment ability both derive from it. The model's debt schedule and levered FCF rows show exactly how much service your cash flow supports.

What drives free cash flow growth?

Revenue growth, margin expansion, CAPEX discipline and working-capital efficiency — the four levers this model parameterises. Change any of them on the Assumptions sheet and watch FCF, cumulative cash and funding need respond.

Is free cash flow the same as net cash movement?

No. Net cash movement includes financing — equity raised, debt drawn and repaid, dividends. FCF deliberately excludes financing to show what the business itself frees up; the model reports both, reconciled.

How many years should an FCF forecast cover?

Three to five years for operating decisions and fundraising; 10–25 for asset-heavy businesses where CAPEX cycles matter. Free tier covers 3 years; premium extends to 25 at $19.98 per model download.

Can I edit the FCF model in Excel after downloading?

Yes — it's a standard unlocked .xlsx, fully formula-linked. Adjust growth, margins, CAPEX or working-capital days and the whole cascade — UFCF, levered FCF, closing cash — recalculates instantly.

What's included in the downloaded workbook?

Cover with key cash metrics, Assumptions, revenue and cost schedules, CAPEX & depreciation, debt, tax with NOL, P&L, cash flow, a dedicated working-capital schedule, balance sheet, cash KPI dashboard with charts, and a live integrity check — every sheet linked.

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