Cash Flow Calculator

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Forecast your business cash flow month by month and see exactly when your balance could run short.

Cash flow forecast

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Enter your balance
to forecast your cash flow

What is cash flow?

Cash flow is the net movement of money into and out of your business over a period of time. A cash flow calculator forecasts that movement month by month, so you can see whether your starting balance will cover your expenses — and spot the month you might run short before it actually happens.

Two simple formulas drive the whole forecast:

Net cash flowCash inflows − Cash outflows
Running balanceStarting balance + cumulative net cash flow

Net cash flow tells you whether a single month adds to or drains your bank account. Running balance carries that result forward, so each month builds on the last. For example, if you start with $12,000, bring in $7,000 a month, and spend $9,000 a month, your net cash flow is −$2,000. That balance hits zero in month 6 and goes negative in month 7 — the month you run out of cash. Seeing that gap early is the whole point.

A single-month snapshot cannot show you this. Two businesses with the same net cash flow can be in completely different shape: one with a large starting balance has months of breathing room, while one running close to zero is one slow month away from trouble. Tracking the running balance across several months is what turns a number into a decision — hire now or wait, take the project or pass, draw down savings or raise your rates.

How to use this calculator

Enter your starting balance. Put in the cash you have on hand right now — the actual money in your business bank account, not what you are owed. This is the foundation the entire forecast builds on.

Add your monthly money in and money out. Enter your expected monthly cash inflows (sales, retainers, paid invoices) and outflows (rent, payroll, software, taxes). The calculator works out your net cash flow and projects a running balance across every month.

Set the forecast length and growth. Choose whether to project 3, 6, or 12 months ahead, and add an optional monthly growth rate if you expect income or costs to rise. The result shows your ending balance, your lowest point, and the exact month a shortfall appears — if one does.

Once you can see when your cash runs short, use the Break-Even Calculator to work out the sales volume you need to turn that balance positive again.

Frequently Asked Questions

What is cash flow?
Cash flow is the net amount of money moving into and out of your business over a set period. Positive cash flow means more money is coming in than going out; negative cash flow means the opposite. It measures the actual cash in your bank account, not paper profit.
How do you calculate cash flow?
Subtract your total cash outflows from your total cash inflows for the period. Formula: Net Cash Flow = Cash In − Cash Out. For example, $7,000 coming in and $9,000 going out gives a net cash flow of −$2,000 for that month, which reduces your bank balance.
What is the difference between cash flow and profit?
Profit is revenue minus expenses on paper, while cash flow is the real money actually in your account. You can be profitable and still run out of cash — for example, when customers owe you money but have not paid yet. Cash flow is what keeps the lights on day to day.
What is a cash flow forecast?
A cash flow forecast projects your future money in and money out to estimate your bank balance over the coming months. It shows whether you can cover upcoming costs like payroll and rent, and warns you of a shortfall while there is still time to act.
How can I improve my business cash flow?
Invoice promptly and shorten payment terms so money arrives sooner, and negotiate longer terms with your own suppliers. Cutting non-essential fixed costs and keeping a cash reserve of three to six months of expenses also smooths out the lean months.