FREE CALCULATOR

Operating Cash flow Calculator

Operating Cash Flow Calculator

Calculate cash generated from your core operations using the indirect method. All values should be for the same period (e.g. last month, last quarter, FY).

Net profit after tax
Non-cash expense
Provisions, SBC, etc.
AR ↑ = enter positive
Inventory ↑ = positive
AP ↑ = positive
Accruals, other current
Operating Cash Flow
0.00
Starting Net Income
0.00
Non-Cash Adjustments
0.00
Working Capital Impact
0.00

How to Use the Operating Cash Flow Calculator

Use this operating cash flow calculator to understand how much real cash your business generates from day-to-day operations.

 

Operating cash flow (OCF) is one of the most important indicators of financial health – it shows whether your core activities are bringing in enough cash to sustain operations, fund growth, and pay off obligations.

 

This calculator helps you move beyond profit numbers and see the actual liquidity behind them.

 

Just enter your net income, add back non-cash expenses like depreciation, and adjust for changes in working capital. The result updates instantly, giving you a clear picture of operational cash performance.

What you need to fill in

  • Net Income:
    Your company’s profit after tax for the period.
  • Depreciation & Amortization:
    Non-cash expenses related to assets and intangibles.
  • Other Non-Cash Items:
    Include provisions, write-downs, or stock-based compensation.
  • Change in Accounts Receivable:
    If AR increased, enter a positive number (cash outflow).
  • Change in Inventory:
    If inventory grew, enter a positive number (cash outflow).
  • Change in Accounts Payable:
    If AP increased, enter a positive number (cash inflow).
  • Change in Other Operating Working Capital:
    Accruals, other current assets or liabilities (optional).

What you get

  • A live operating cash flow result that updates as you type

  • A breakdown of net income, non-cash adjustments, and working capital impact

  • Transparent calculation formula for full clarity

How to use the result

  • Positive operating cash flow means your core business is generating enough cash to fund operations and growth – a strong financial signal.
  • Negative operating cash flow means more cash is going out than coming in from daily operations – often a sign of inefficiency, excess inventory, or delayed collections.

What Is Operating Cash Flow

Operating Cash Flow (OCF) measures the actual cash generated by business operations during a specific period.

It excludes financing and investing activities, showing how effectively a company converts profit into cash.

Formula

operating cash flow

Operating Cash Flow = Net Income

  • Depreciation & Amortization

  • Other Non-Cash Items
    − Change in Accounts Receivable
    − Change in Inventory

  • Change in Accounts Payable

  • Change in Other Operating Working Capital

 

Strong OCF means your company can sustain itself through its own operations – without relying on external funding.

When to Use an Operating Cash Flow Calculator

Use this calculator when you need to:

 

  • Analyze cash conversion efficiency
  • Review monthly or quarterly cash flow statements

  • Prepare for investor or board reporting

  • Assess liquidity during budgeting or forecasting cycles

  • Monitor how operational changes impact cash

Take It Further with Farseer

If you calculate cash flow regularly, static spreadsheets can only take you so far.

Farseer connects your P&L, balance sheet, and cash flow into one dynamic model, updating automatically as data changes.

 

With Farseer, you get:

  • Real-time cash flow visibility

  • Automated operating cash flow analysis

  • ERP and CRM integrations

  • Collaborative planning across finance, supply, and commercial teams

  • Scenario modeling for liquidity and risk forecasting

 

Ditch spreadsheet chaos. Build a connected, reliable cash flow model with Farseer – the control center for modern finance.

 

Book a demo and see how finance teams plan faster, with clarity and confidence.