Cash Flow Projection Calculator
Project your business's future cash flow by supplying your starting balance, expected inflows, and planned expenses to see ending cash, net flow, and safety margins.
How to Use This Calculator
Capture your opening cash balance, set the number of months you want to forecast, and then enter every predictable source of money coming in and each recurring payment going out.
- Enter your starting cash balance to anchor the forecast.
- Choose how many months you want to project (1–60 months).
- Add recurring inflows such as sales, loan proceeds, or other income.
- Provide recurring expenses including rent, salaries, cost of goods, and other payments.
- Click Calculate to populate the schedule and review the summaries, which update automatically.
Methodology
The calculator uses a constant monthly net flow (total inflows minus total outflows) and applies it to the starting balance for each month in the forecast. The net change shown at the bottom equals the difference between the final ending balance and the opening cash.
- Each row in the schedule captures the beginning balance, the net movement for that month, and the resulting ending balance.
- Positive months count only when the expected inflows exceed outflows; otherwise the count stays at zero.
- The model assumes averages stay stable month to month and does not introduce seasonal swings.
Full original guide (expanded)
What is the difference between cash flow and profit?
Profit (or Net Income) is your total revenue minus all expenses, including non-cash items like depreciation, as shown on an income statement. Cash Flow is the actual movement of money in and out of your business. A business can be profitable but have negative cash flow if, for example, clients are slow to pay their invoices (high accounts receivable).
Why is cash flow projection important for a small business?
Cash flow projection is vital because it helps you anticipate future cash shortages or surpluses. It allows you to make informed decisions about hiring, purchasing inventory, managing debt, and planning for growth. It is the key to maintaining business liquidity and avoiding insolvency.
What if my income or expenses are not the same every month?
This calculator uses average monthly figures for simplicity. For a more detailed forecast with variable (seasonal) income and expenses, you would typically use a spreadsheet. This tool is best for getting a quick, high-level projection based on your typical month.
Are non-cash expenses like depreciation included?
No. This is a cash flow calculator, not a profit calculator. Non-cash expenses like depreciation and amortization are accounting entries that do not affect your bank balance. Therefore, they are excluded from this calculation.
How can I improve my business's cash flow?
To improve cash flow, you can: 1. Increase inflows by invoicing promptly and chasing late payments. 2. Decrease outflows by negotiating better terms with suppliers or cutting non-essential costs. 3. Manage financing by securing a line of credit before you need it.