Free Float Calculator

Free Float Calculator

When analyzing a company’s stock, investors often look beyond just market capitalization and earnings. One of the most important yet overlooked metrics is Free Float, the number of shares available for public trading. Free float directly affects liquidity, volatility, and investor demand, making it a critical factor for traders, analysts, and portfolio managers.

Our Free Float Calculator helps you quickly compute both the total free float shares and the free float percentage by taking into account outstanding shares, restricted shares, and closely held shares. Whether you are analyzing a large-cap stock or a small-cap company, this tool gives you a precise picture of how much of the company’s stock is truly available for trading.

🔎 What is Free Float?

Free float represents the portion of a company’s shares that are available for trading in the open market. It excludes restricted shares (locked for employees, executives, or insiders) and closely held shares (owned by promoters, institutions, or governments).

👉 Formula for Free Float:

👉 Formula for Free Float Percentage:

📚 Examples of Free Float

Example 1

Outstanding Shares = 500,000
Restricted Shares = 20,000
Closely Held Shares = 30,000

Step 1 – Calculate Free Float:

Step 2 – Calculate Free Float Percentage:

✅ Free Float = 450,000 shares
✅ Free Float Percentage = 90%
This means 90% of shares (450,000 worth) are available for trading, indicating strong liquidity.

Example 2

Outstanding Shares = 250,000
Restricted Shares = 40,000
Closely Held Shares = 60,000

Step 1 – Calculate Free Float:

Step 2 – Calculate Free Float Percentage:

✅ Free Float = 150,000 shares
✅ Free Float Percentage = 60%
Here, only 60% of shares (150,000 worth) are available to the public, meaning lower liquidity and potentially higher volatility.

Example 3

Outstanding Shares = 100,000
Restricted Shares = 20,000
Closely Held Shares = 50,000

Step 1 – Calculate Free Float:

Step 2 – Calculate Free Float Percentage:

✅ Free Float = 30,000 shares
✅ Free Float Percentage = 30%
In this case, only 30% of shares (30,000 worth) are open to the public. This limited float often causes sharp price swings due to low supply.

✨ Features of Our Free Float Calculator

👩‍💼 Who Should Use This Calculator?

💡 Why Free Float Matters

Higher Free Float (80–100%) → Indicates stability, smoother price movements, and higher liquidity.
Lower Free Float (below 40%) → Suggests high volatility, illiquidity, and susceptibility to price manipulation.
Free float percentage is often used by index providers (like S&P and MSCI) when determining a company’s weight in stock indices.