The invention relates to a FeAl magnetostriction alloy strip low in price and a preparation method.. The FeAl magnetostriction alloy comprises, by weight, 11.5% to 14.5% of Al, 0% to 0.5% of Mn, 0% to 0.5% of Si, no larger than 0.02% of C, no larger than 0.02% of S, no larger than 0.02% of P, no larger than 2.0% of Mo, no larger than 0.03% of Ce, and the balance Fe. The FeAl magnetostriction alloy is low in price, high in Curie temperature, electrical resistivity and hardness and small in density, wherein the density is 6.7g/mm<3>. The FeAl magnetostriction alloy has good magnetic performance and the large saturated magnetostriction coefficient within a wide temperature range, can replace expensive rare earth super-magnetostriction materials, iron cobalt and iron nickel magnetostriction materials in many fields, and can be widely applied to various high-accuracy instruments and meters.