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Unlevered Cash Flow with Working Capital Release

Estimate unlevered cash flow using operating profit, a tax assumption, capital spending and a signed working-capital cash effect.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

EBIT of 1000 taxed at 25%, depreciation of 100, capex of 200 and a working-capital release of 50 produce UFCF of 700.

UFCF = EBIT(1 − tax) + depreciation/amortization − capex + working-capital cash release.

Worked example

Enter these known values and leave the other values blank.

EBIT
1000 USD
Effective tax rate (ETR)
25 %
Depreciation and amortization (DA)
100 USD
Capital expenditures (CaPex)
200 USD
Working capital cash release (negative for investment)
50 USD
Unlevered free cash flow (UFCF)
700 USD

Assumptions and limitations

  • The working-capital input is a cash release: enter an increase in required working capital as a negative amount. It is not the positive change in the balance-sheet stock.
  • The entered flat tax rate is a scenario. Negative EBIT uses the same algebra and may imply a tax benefit that is unavailable in practice.
  • Enter all monetary amounts in a single currency. Retained currency conversion factors are a captured static snapshot, not live exchange rates.
  • Clear a known field before solving for it. Locks retain chosen inputs; inconsistent locked values need correction. Reset restores the captured defaults.

Common questions

What does the worked example show?

EBIT of 1000 taxed at 25%, depreciation of 100, capex of 200 and a working-capital release of 50 produce UFCF of 700.

What assumptions limit this calculation?

The working-capital input is a cash release: enter an increase in required working capital as a negative amount. It is not the positive change in the balance-sheet stock.

References

Use the documented finite scenario domain. Use a percentage between zero and 100.

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