Unlevered Free Cash Flow Calculator
Estimate a company’s Unlevered Free Cash Flow (UFCF) — the cash generated before financing costs — from a few standard income statement and cash flow inputs.
What Is Unlevered Free Cash Flow?
Unlevered Free Cash Flow (UFCF) is the cash a business generates from operations before accounting for interest payments or other financing costs. Because it excludes the effect of debt, analysts use it to compare companies with different capital structures on an apples-to-apples basis, and it is the standard cash flow figure used in discounted cash flow (DCF) valuation.
The Formula
UFCF = EBIT × (1 − Tax Rate) + Depreciation & Amortization − Capital Expenditures − Change in Net Working Capital.
- EBIT × (1 − Tax Rate) gives NOPAT, the after-tax operating profit.
- D&A is added back because it is a non-cash expense.
- CapEx and the increase in net working capital are subtracted because they represent real cash outflows needed to sustain and grow the business.
This calculator is for general financial education and planning purposes and is not a substitute for professional financial or investment advice.