Cash Flow Calculator

Calculate net cash flow from total inflows and outflows.

Initial Position

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Additional Costs

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Planning Parameters

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Cash Flow Summary

$170,016
Final Cash Position
$5,835
Avg Monthly Cash Flow

Total Revenue

$613,227

Over 12 months

Total Expenses

$543,210

Including taxes

Net Cash Flow

$70,016

Total for period

Best Month Cash

$170,016

Peak cash position

Worst Month Cash

$100,000

Lowest cash position

Cash Runway

12 months

At current burn rate

Cash Flow Management Tips

Improving Cash Flow:

  • Accelerate receivables collection
  • Extend payables terms
  • Manage inventory levels
  • Offer early payment discounts

Warning Signs:

  • Declining cash balances
  • Increasing payment delays
  • Rising expenses vs revenue
  • Cash below minimum buffer

Planning Strategies:

  • Maintain 3-6 months expenses in cash
  • Establish credit lines before needed
  • Plan for seasonal variations
  • Regular cash flow forecasting

Key Metrics:

  • Operating cash flow ratio
  • Cash conversion cycle
  • Days sales outstanding
  • Free cash flow margin

How it works

Cash flow is the money moving in and out over a period. The calculator subtracts total outflows (expenses, debt payments, purchases) from total inflows (income, receipts). Positive cash flow builds reserves; negative means you're drawing them down.

Net cash flow

Net cash flow = total inflows − total outflows
inflows
income, sales, receipts
outflows
expenses, debt payments, purchases

Worked example

  • Inflows = $8,000/month
  • Outflows = $6,500/month
  1. Net = 8,000 − 6,500

Positive cash flow of $1,500/month.

Good to know

  • Cash flow differs from profit: a profitable business can still run out of cash if receivables lag bills.
  • Separate recurring flows from one-offs to judge the sustainable trend.
  • A cash-flow cushion is what carries you through lean months.

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Frequently Asked Questions

What is cash flow?

Cash flow is the money moving in and out over a period: net cash flow = total inflows − total outflows. Bringing in $8,000 a month against $6,500 of outflows leaves +$1,500. Positive flow builds reserves; negative flow drains them.

How is cash flow different from profit?

Profit counts revenue when earned; cash flow counts money when it actually moves. A profitable business can still run out of cash if customers pay slowly while bills come due now — which is why cash flow, not profit, is what sinks otherwise healthy companies.

What is free cash flow?

For a business, free cash flow is operating cash flow minus capital expenditures — the cash genuinely available after maintaining and growing the asset base. It is a favorite measure of financial health because it is hard to flatter with accounting choices.

Why does positive cash flow matter so much?

It is the cushion that absorbs surprises: a slow month, a broken furnace, a late-paying client. Without positive flow you are forced to borrow at the worst possible time. Separating recurring flows from one-offs reveals whether the underlying trend is sustainable.

How can I improve my cash flow?

Accelerate inflows (invoice immediately, shorten payment terms, require deposits) and slow or shrink outflows (negotiate supplier terms, trim recurring subscriptions, stagger large payments). Even profitable operations usually find meaningful timing gains on both sides.