The present invention is to provide a free-cutting steel capable of suppressing production of coarse inclusions, and having a high fatigue strength and a desirable machinability. The free-cutting steel aimed at solving the foregoing problems consists essentially of, in % by mass, C: 0.1-0.5%, Si: 0.05-2.5%, Mn: 0.1-3.5%, S: 0.0005-0.004%, Al: 0.01-0.06%, Ti: 0.003-0.01%, O: up to 0.0015%, N: 0.003-0.01%, Bi: 0.015-0.025%, and the balance of Fe and inevitable impurities, wherein the formula (1) below is satisfied: -4.8.ltoreq.log(([N]-0.0015).times.[Ti].sup.0.98).ltoreq.-4.3. formula (1)