# Free cash flow

> Free cash flow is a cash and runway metric, calculated as Operating cash flow − Capital expenditures. Non-GAAP; state whether capitalized software and finance-lease principal are deducted.

Source: https://lopifi.com/glossary/free-cash-flow
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is free cash flow?** Free cash flow is a cash and runway metric, calculated as Operating cash flow − Capital expenditures.

## Formula

`Operating cash flow − Capital expenditures`

## Note

Non-GAAP; state whether capitalized software and finance-lease principal are deducted

- **Category:** Cash & runway
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** runway