Cash Flow Forecast Calculator
Project your business cash flow over 3, 6, or 12 months. Enter income sources, recurring expenses, and one-time items to see a month-by-month forecast with visual cash balance tracking.
Monthly Income Sources
Monthly Expenses
One-Time Items
Use positive amounts for income and negative for expenses.
| Month | Opening Balance | Total Income | Total Expenses | Net Cash Flow | Closing Balance |
|---|
Cash Balance Over Time
Cash Flow Forecasting for Small Businesses
Cash flow is the lifeblood of any business. While profit tells you whether your business model works on paper, cash flow tells you whether you can actually pay your bills, meet payroll, and invest in growth. A cash flow forecast projects your expected inflows and outflows over a defined period, giving you a forward-looking view of your financial health.
Why Cash Flow Forecasting Matters
Many profitable businesses fail because they run out of cash. This happens when revenue is recognized before it is collected, when large expenses are front-loaded, or when seasonal dips are not anticipated. A monthly forecast helps you spot these problems weeks or months in advance, giving you time to arrange financing, accelerate collections, or delay discretionary spending.
How to Build an Accurate Forecast
Start with your actual cash on hand today. List every recurring income source and expense, then apply realistic growth rates to model expected changes. Do not forget one-time items like annual insurance premiums, tax payments, equipment purchases, or expected client prepayments. Review your forecast monthly and compare projections to actual results so your estimates improve over time.
Using Growth Rates Effectively
Growth rates in this calculator compound monthly. A 5% monthly growth rate on a $10,000 revenue stream means $10,500 in month two, $11,025 in month three, and so on. Use conservative estimates. If you expect revenue to grow 20% over six months, that translates to roughly 3% per month, not 20%.
How to Use This Calculator
Enter your current cash balance and select a forecast period. Add income sources and expenses with optional monthly growth rates. Include any one-time items in the months they will occur. Click Calculate Forecast to generate your month-by-month projection, visual chart, and summary metrics. Export the results as CSV for your records or print the forecast for meetings.
Frequently Asked Questions
What is a cash flow forecast?
A cash flow forecast projects expected cash inflows and outflows over a future period, typically 3 to 12 months. It helps you anticipate shortfalls and plan spending.
How often should I update my cash flow forecast?
Most advisors recommend updating monthly or whenever significant changes occur, such as landing a large client or taking on new debt.
What is the difference between cash flow and profit?
Profit is revenue minus expenses on an accounting basis. Cash flow tracks actual money moving in and out of your bank account. A profitable business can still run out of cash.
How do I handle seasonal fluctuations?
Use growth rates to model expected increases or decreases. You can also add one-time items for seasonal costs like holiday inventory or annual insurance premiums.
What should I do if my forecast shows a negative balance?
A projected negative balance is an early warning. Consider securing a line of credit, accelerating receivables, delaying non-essential expenses, or reducing costs before the shortfall occurs.