The invention discloses copper-iron intermediate alloy and a preparing method thereof. The copper-iron intermediate alloy is prepared from, by mass percentage, 20-50% of Fe, 0.01-1.0% of Ni, 0.01-1.0%of Cr, 0.01-0.5% of Mg, 0.01-0.5% of Y, 0.01-0.05% of S, 0.005-0.03% of P and the balance copper and other inevitable trace impurities. The invention further provides a preparing method of the copper-iron intermediate alloy. Ni, Cr, Mg, Y, S, P and other various metal elements are added, and a technology of combining smelting with compressed air blowing and quick cooling is adopted under a non-vacuum condition. According to the copper-iron intermediate alloy prepared by means of the method, segregation and beneficiation of iron in ingot casting are avoided, the component homogeneity is greatly improved, and can reach the range of +/-2%, and the average size of the iron-rich phase is smaller than or equal to 50 micrometers.