A leadless free-cutting copper alloy and a preparation method. The copper alloy comprises the following elements by mass: 58.0%-96.0% of copper, 2.0%-2.9% of manganese, 0.2%-6.0% of tin, not more than 0.3% of phosphor, not more than 0.3% of nickel, 0.10%-0.19% of sulfur, 0.1%-0.9% of the sum of 1-3 elements selected from silicon, iron, molybdenum, tungsten, and cobalt, and the balance of zinc. In the alloy, the mass ratio of manganese and sulfur is more than 10 and less than 30; the other elements are impurities, and the mass fraction of any one of the impurities is not more than 0.03%; the sum of the mass fractions of all the impurities is not more than 0.5%. The preparation method comprises the following steps: melting and alloying the base metal element of copper and the important metal element of manganese, adding other alloy elements and performing homogenization, performing refining, adding sulfide or sulfur, performing homogenization and adding zinc rapidly, immediately casting into a ingot casting or performing atomization to obtain powder. The leadless free-cutting copper alloy and the preparation method of the invention are applicable to cutting processing, hot forging processing, and polishing processing of copper alloy.