Calculate free-float shares, free-float percentage, free-float market capitalisation, locked shares, liquidity band.
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Display currency
Currency affects price and market-cap display only; share counts are unchanged.
Input method
Example presets
Assumptions
Free float excludes shares that are not normally available for public trading, such as restricted stock, founder or insider stakes, government holdings, and strategic cross-holdings. Definitions vary by data vendor and index provider.
Result
Free-float market capitalisation across 75,000,000 tradeable shares.
Interpretation
A majority of shares are tradeable, which is usually workable for broad investor access.
Formula trace
100000000 x 75% = 75000000 free-float shares; 75,000,000 × $25.00 = $1,875,000,000.00.
Index-weight estimate
0.38% of the entered index free-float market cap.
Market Structure
Free-float market capitalisation measures the total value of a company's publicly tradeable shares, excluding insider holdings, government stakes, and other restricted blocks.
Major index providers (S&P, MSCI, FTSE) use free-float market cap rather than total market cap for index weighting. This ensures that index weights reflect actually tradeable shares, not locked-up holdings.
A low free-float percentage means fewer shares are available for public trading, which typically leads to lower liquidity, wider bid-ask spreads, and higher price volatility.
Multiply total shares by the free-float fraction and the stock price. If you know restricted and closely-held shares instead, subtract those locked blocks from total shares first, then multiply the remaining free-float shares by the share price.
Free-Float Market Cap = Total Shares × Free-Float % × Price
Free-float shares = Total Shares − Locked Shares (insiders, founders, governments, strategic holders).
Free Float % = Free-Float Shares ÷ Total Shares × 100
The free-float percentage shows how much of the share base is normally available for public trading.
100 million total shares, 75% free-float, 25 per share. Free-float shares = 75 million. Free-float market cap = 75M × 25 = 1.875 billion.
The same result can be reached from locked-share inputs. If 10 million shares are restricted and 15 million are closely held by insiders or strategic holders, then free-float shares = 100M − 10M − 15M = 75M. The locked percentage is 25%, and the free-float percentage is 75%.
A high free-float percentage usually means more shares are available for trading, which can support tighter bid-ask spreads, deeper order books, and easier institutional participation. A low free float does not automatically make a stock bad, but it can make price moves more sensitive to concentrated buying or selling.
The calculator groups free-float percentage into liquidity bands so the share count is easier to interpret. Treat those bands as a screening aid, not a trading rule: volume, market maker participation, short interest, investor concentration, and upcoming lock-up expirations can all change actual liquidity.
Many equity indices are float-adjusted. Instead of weighting each company by full market capitalisation, index providers often multiply price by the investable or free-float shares so an index more closely reflects shares that passive funds can realistically buy.
If you know the total free-float market capitalisation of an index, the calculator can estimate the company's float-adjusted index weight. This is useful for understanding why a company with a large full market cap may receive a smaller index weight when founders, governments, or strategic holders control a large block.
Restricted stock usually includes shares subject to legal, contractual, or lock-up restrictions. Closely-held or strategic shares can include founder stakes, insider ownership, government holdings, controlling shareholders, cross-holdings, and long-term strategic blocks.
Definitions differ by index provider and data vendor. Some providers use investable weight factors, buffers, minimum free-float thresholds, or country-specific rules. For public filings, check the company's latest share-count disclosures and beneficial ownership tables before treating a free-float estimate as definitive.
Free-float percentage estimates vary by data provider. The calculator does not track intraday changes in insider ownership, beneficial ownership updates, lock-up expirations, treasury share changes, dual-class share rights, or derivative-based economic exposure. It is best used to structure an estimate, not as a substitute for index-provider data or company filings.
Frequently asked questions
Free-float weighting reflects the actual investable opportunity. If 50% of a company's shares are held by the government, only the other 50% can be traded — full market cap would overstate that company's weight in the index.
Insider holdings, founder stakes, government ownership, strategic cross-holdings, and shares subject to lock-up agreements. Definitions vary slightly by index provider.
Lower free-float means fewer shares available for trading, leading to lower liquidity, wider spreads, and potentially higher volatility. Institutional investors may avoid very low free-float stocks.
Index providers (S&P, MSCI) publish free-float factors for constituent companies. Financial data services (Bloomberg, Reuters) also provide free-float estimates.
Subtract restricted shares and closely-held or strategic shares from total shares outstanding. Then divide the result by total shares to get the free-float percentage, or multiply by price per share to estimate free-float market capitalisation.
Total market cap counts every share outstanding. Free-float market cap counts only the shares generally available for public trading. Free-float market cap is usually lower when insiders, founders, governments, or strategic holders own large blocks.
There is no universal cutoff. A high free float, such as 60% to 80% or more, generally suggests broader public availability. A low free float can mean tighter supply, weaker liquidity, and more volatility, but the practical impact also depends on trading volume and investor concentration.
Index funds usually need to replicate an investable index. Float-adjusted weighting reduces the weight of shares that passive funds cannot realistically buy because they are locked, strategically held, or otherwise not part of the public trading supply.
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