Free Float Calculator

What is Free Float?

Free float, also referred to as float or public float, represents the portion of a company's outstanding shares that are available for trading by the general public. It excludes restricted shares, such as those held by company insiders, promoters, founders, strategic corporate partners, and government entities.

Free Float Formulas

Free float metrics are calculated using the following equations:

• Free Float Shares: $$\text{Free Float Shares} = \text{Total Outstanding Shares} - \text{Restricted Shares}$$
• Free Float Percentage: $$\text{Free Float \%} = \left(\frac{\text{Free Float Shares}}{\text{Total Shares}}\right) \times 100$$
• Free Float Market Capitalization: $$\text{Free Float Market Cap} = \text{Free Float Shares} \times \text{Share Price}$$

Why is Free Float Important?

Major stock market indices (such as the S&P 500, FTSE 100, and MSCI Indices) use free-float market capitalization weighting rather than total market capitalization. This prevents companies with large closely-held blocks from distorting index movements and ensures reflecting true market liquidity.