FCF to Equity (FCFE)
Calculate FCF to Equity (FCFE) instantly with the exact formula and a worked example.
FCF to Equity (FCFE)
FCFF — free cash flow to the firm$
Interest expense$
Corporate tax rate%
New debt issued$
Debt repaid$
FCFE
9,700$
After-tax interest
800$
Net borrowing
500$
Interest tax shield
200$
Result
Cash flow available to shareholders
More about: FCF to Equity (FCFE)
What it calculates
The “FCF to Equity (FCFE)” calculator computes FCFE in $ from 5 parameters: fcff — free cash flow to the firm ($), interest expense ($), corporate tax rate (%), new debt issued ($), debt repaid ($).
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters FCFF — free cash flow to the firm = 10,000 $, Interest expense = 1,000 $, Corporate tax rate = 20 %, New debt issued = 1,500 $, Debt repaid = 1,000 $ the result is 9,700 $.
How to use
- Enter fcff — free cash flow to the firm, interest expense, corporate tax rate, new debt issued and debt repaid — each field above is adjustable with a slider.
- FCFE ($) is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.
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