Accounting Cash Flow (Per-Unit) Calculator
Estimate the after-tax operating cash flow generated by each unit sold using revenue, costs, depreciation, volume, and tax rate.
Overview
This Accounting Cash Flow (Per-Unit) Calculator estimates the after-tax operating cash flow produced by each unit sold. Enter your selling price, variable cash costs, sales volume, fixed cash operating costs, depreciation, and an estimated tax rate to see both per-unit and total-period results.
How it works
The calculator first estimates total revenue and subtracts variable cash costs, fixed cash operating costs, and depreciation to find EBIT. It applies the entered tax rate to positive EBIT, then adds depreciation back because it is a non-cash expense. The resulting accounting cash flow is divided by units sold to calculate cash flow per unit. This is an operating cash flow estimate and does not include capital spending, debt payments, or changes in working capital.
How to use this calculator
- 1Enter the selling price received for one unit.
- 2Add the cash costs that vary for each unit sold.
- 3Enter the number of units sold in the period.
- 4Add fixed operating costs paid in cash for that period.
- 5Enter depreciation and amortization as non-cash expenses.
- 6Set an estimated tax rate and review the cash flow per unit.
Example Calculation
Selling price per unit
$50
Variable cash cost per unit
$22
Units sold
1000
Fixed cash operating costs
$10,000
Depreciation and amortization
$5,000
Estimated tax rate
25%
Accounting cash flow per unit
$14.75
With a selling price of 50 per unit, variable cash costs of 22 per unit, and 1,000 units sold, estimated accounting cash flow is 14.75 per unit and 14,750 for the period.
Frequently asked questions
What is accounting cash flow per unit?
It is estimated after-tax operating cash flow divided by units sold. It indicates how much operating cash flow each unit contributes over the selected period.
Why is depreciation added back to cash flow?
Depreciation and amortization reduce accounting profit but do not usually require a cash payment in the period. Adding them back helps move from after-tax operating profit toward operating cash flow.
Are fixed costs included in the per-unit result?
Yes. Total fixed cash operating costs are included and spread across the number of units sold, so the result reflects the impact of sales volume.
Does this include interest payments or loan repayments?
No. The calculator focuses on operating cash flow and excludes financing items such as interest, principal repayments, and owner distributions.
Why does a higher sales volume change cash flow per unit?
Variable costs generally rise with each unit, but fixed cash costs are spread across more units as volume increases. This can raise cash flow per unit when other inputs stay the same.
Does the calculator account for tax losses?
No immediate tax benefit is included when EBIT is below zero. In practice, the use and timing of tax losses depend on applicable rules and business circumstances.
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Assumptions and warnings
Assumptions
- The calculation uses an after-tax operating cash flow approach: EBIT minus estimated taxes plus depreciation and amortization.
- Fixed cash operating costs and depreciation are treated as totals for the same period as the units sold.
- The entered tax rate applies only when EBIT is positive; no immediate tax benefit is assumed for operating losses.
- Interest expense, financing cash flows, capital expenditure, working-capital changes, and owner withdrawals are excluded.
- Results are estimates and depend on the completeness and accuracy of the costs entered.
Warnings
- This calculator provides an estimate only and is not accounting, tax, or financial advice.
- Tax treatment, timing of cash payments, and allowable deductions can vary by business and jurisdiction.