# Unlevered Free Cash Flow Calculator

URL: https://speedycalculator.com/calculators/finance/unlevered-free-cash-flow/
Last updated: 2026-10-25

> The unlevered free cash flow calculator works out the cash flow available to all investors before debt payments – EBITDA minus taxes on EBIT, capital expenditure and the change in working capital.

## Inputs

- EBITDA
- Depreciation and amortization
- Tax rate (%)
- Capital expenditure
- Increase in working capital

## Results

- EBIT
- Taxes on EBIT
- Unlevered free cash flow

## Formula

```
Unlevered FCF = EBITDA − taxes on EBIT − capex − change in working capital
= EBIT × (1 − t) + D&A − capex − ΔWC
```

## Explanation

Unlevered FCF is used in DCF models to value the whole business independent of its capital structure, discounted at the WACC.

### How to use the Unlevered Free Cash Flow Calculator

- **EBITDA**
- **Depreciation and amortization**
- **Tax rate**
- **Capital expenditure**
- **Increase in working capital**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter EBITDA, depreciation and amortization, the tax rate, capital expenditure and the change in working capital.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterEBITDAAmount in your currencyDepreciation and amortizationAmount in your currencyTax rateIn %Capital expenditureAmount in your currencyIncrease in working capitalAmount in your currency

### What each result means

- **EBIT** = [EBITDA] - [Depreciation and amortization]
- **Taxes on EBIT** = max([EBIT], 0)×[Tax rate]÷100
- **Unlevered free cash flow** = [EBITDA] - [Taxes on EBIT] - [Capital expenditure] - [Increase in working capital]

### Example values

How the main result changes when **EBITDA** changes and everything else stays at the example values above:

EBITDAUnlevered free cash flow450,00097,000675,000274,750900,000452,5001,125,000630,2501,350,000808,0001,800,0001,163,500

## Worked example

Inputs — EBITDA: $900,000; Depreciation and amortization: $150,000; Tax rate: 21 %; Capital expenditure: $250,000; Increase in working capital: $40,000.

Results — EBIT = $750,000.00; Taxes on EBIT = $157,500.00; **Unlevered free cash flow = $452,500.00**.

## FAQ

**What is unlevered free cash flow?**
Cash flow before interest and debt repayments.

**Why is it called unlevered?**
It ignores the company's debt (leverage).

**Is unlevered FCF the same as FCFF?**
Yes, they are essentially the same measure.

**What formula does the Unlevered Free Cash Flow Calculator use?**
Unlevered FCF = EBITDA − taxes on EBIT − capex − change in working capital.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)