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Business & StartupCash Management

Cash Flow Calculator

Forecast monthly net cash inflows and outflows, closing cash balances, and operational cash runway to maintain company liquidity and solvency.

Cash Reserves & Monthly Burn Dynamics

Net Cash Flow & Liquidity Formula

Net Monthly Cash Flow = Inflows - Outflows + Financing; Ending Cash = Beginning Balance + (Net Cash Flow × Forecast Months); Runway = Cash Balance / Monthly Burn
  • Cash Inflows: Actual collected cash payments from clients, accounts receivable, and cash sales.
  • Cash Outflows: Immediate cash disbursements for payroll, rent, inventory supplier invoices, and taxes.
  • Cash Runway: Number of months until cash depletion if operating at a negative net cash flow.

Step-by-Step Worked Example

Scenario: Starting with $100,000 cash, generating $45,000/mo inflows, and paying $55,000/mo outflows over a 6-month forecast

Calculation Steps:

  1. Net Monthly Cash Flow = $45,000 - $55,000 = -$10,000 / month (Cash Burn)
  2. Ending Cash Balance = $100,000 + (-$10,000 × 6) = $40,000
  3. Cash Runway Remaining = $100,000 / $10,000 = 10.0 months
Result: Net cash flow is -$10,000/month. The 6-month closing cash balance will be $40,000, with 10.0 months of total operational runway remaining.

How to Use This Calculator

  1. 1Enter current liquid cash and bank balances.
  2. 2Input expected monthly cash collections and outgoing disbursements.
  3. 3Set the forecast horizon in months.

Assumptions & Limitations

  • Cash flow measures actual timing of cash movements, distinct from accrual accounting revenue.
  • Assumes steady monthly cash velocity over the projection window.

Frequently Asked Questions

How is cash flow different from profit?

Profit is an accounting calculation (Revenue minus Expenses). Cash flow measures literal bank balance changes. A profitable company can run out of cash if clients take 90 days to pay invoices while payroll is due weekly.

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