Functional residual capacity (FRC) is an important diagnostic parameter measured using $N_{2}$ analyzer. Since $N_{2}$ analyzer is expensive as well as cumbersome for use of noisy vacuum pump, the FRC measurement becomes possible only in large well-equipped hospitals. The present study introduced a new $TN_{2}$ wash-out technique to measure FRC by $O_{2}/CO_{2}$ analysis, which is relatively cheaper and much simpler to apply. Slower $O_{2}$ response was compensated for high frequency to be coincided with $CO_{2}$ response, thereby enabled indirect, but accurate $N_{2}$ concentration measurement. FRC was estimated by continuous integration of expired $N_{2}$ volume obtained with air flow signal. Experiment with 3 L syringe, a standard calibration device recommended by the American Thoracic Society, demonstrated less than 1% error at 0, 1, and 2 L. Correlation coefficient was almost ideal, guaranteeing linear estimation of FRC. The present technique is inexpensive and simple to apply, thus should he of great convenience.