# Operating Cash Flow Calculator

Operating cash flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization. Calculating operating cash flow is vital as it gives us an indication whether the organization is able to achieve the required cash flow to grow its operations.

**Formula to calculate operating cash flow is given below:**## Calculating Operating Cash Flow

**Example:** A company ABC has earnings before interest and taxes of $1000, depreciation of $200 and taxes of $350. Calculate its operating cash flow.

**Solution:**Given:

EBIT (earnings before interest and taxes) = $1000

Depreciation = $200

Taxes = $350

We know the formula to calculate operating cash flow = EBIT + Depreciation - Taxes

Inserting values into the formula = $1000 + 200 - 350

= 850

Hence, operating cash flow for the company ABC is $850.In our below online operating cash flow calculator, enter the EBIT, depreciation and taxes in the respective boxes and click calculate button to find the operating cash flow.

You might also be interested in:

EBIT Calculator,

EBIT Margin Calculator and

EBITDA Calculator

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