What is unlevered free cash flow and why is it used?

Unlevered free cash flow (UFCF) represents the cash a company generates from operations before deducting interest and principal payments. It is used to evaluate a firm's operational performance and its capacity to repay debt or pay dividends to shareholders, independent of its capital structure.

How do I calculate UFCF using this tool?

Input the company's EBIT, effective tax rate, depreciation and amortization, capital expenditures, and change in working capital. The calculator applies the formula: UFCF = EBIT × (1 - tax rate) + Depreciation & Amortization - Capital Expenditures - Change in Working Capital to produce the result.

Can I use this calculator for any company size?

Yes, the tool is designed for any business with available financial data. However, the relevance of certain inputs, like changes in working capital, may vary significantly between large corporations and small businesses.

What if my company has no depreciation or amortization?

You can enter zero for depreciation and amortization. The calculator will still compute UFCF using the remaining inputs, though the result will reflect only the cash generated from core operations and investments.

Investment AnalysisFree Tool

Unlevered Free Cash Flow Calculator

Provided byOmni Calculatoromnicalculator.com

This handy unlevered free cash flow calculator helps you determine all the free cash flow available for stockholders ...

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About this tool

What Unlevered Free Cash Flow Calculator does

The Unlevered Free Cash Flow Calculator on Omni Calculator estimates the cash available to both stockholders and debtholders after accounting for operating costs, taxes, and investments. Users input key financial figures—EBIT, effective tax rate, depreciation and amortization, capital expenditures, and change in working capital—to receive a clear measure of a company's operational performance and debt repayment capability. The tool presents the UFCF calculation alongside explanations of each component, making it accessible for those evaluating financial health without needing advanced accounting software.

Step by step

How to use the Omni Calculator Unlevered Free Cash Flow Calculator

1
Enter the company's EBIT (Earnings Before Interest and Taxes) into the designated field
2
Input the effective tax rate as a percentage
3
Provide the depreciation and amortization amount
4
Specify capital expenditures (CapEx) for the period
5
Enter the change in working capital (ΔWC); the calculator will display the resulting unlevered free cash flow (UFCF) and break down how each input contributed to the final figure

Is it right for you

Best for

Investors, analysts, and business owners who need a quick, intuitive way to assess a company's operating cash generation and its ability to service debt or pay dividends without the distortion of capital structure.

Limitations

Relies on user-provided financial data accuracy; errors in input will produce incorrect UFCF results
Does not incorporate detailed financing decisions or market conditions beyond the entered tax rate
Estimates based on standard formulas; may not reflect industry-specific working capital dynamics or one-time events

Questions

Unlevered Free Cash Flow Calculator FAQ

What is unlevered free cash flow and why is it used?: Unlevered free cash flow (UFCF) represents the cash a company generates from operations before deducting interest and principal payments. It is used to evaluate a firm's operational performance and its capacity to repay debt or pay dividends to shareholders, independent of its capital structure.
How do I calculate UFCF using this tool?: Input the company's EBIT, effective tax rate, depreciation and amortization, capital expenditures, and change in working capital. The calculator applies the formula: UFCF = EBIT × (1 - tax rate) + Depreciation & Amortization - Capital Expenditures - Change in Working Capital to produce the result.
Can I use this calculator for any company size?: Yes, the tool is designed for any business with available financial data. However, the relevance of certain inputs, like changes in working capital, may vary significantly between large corporations and small businesses.
What if my company has no depreciation or amortization?: You can enter zero for depreciation and amortization. The calculator will still compute UFCF using the remaining inputs, though the result will reflect only the cash generated from core operations and investments.

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