What is a cash flow projection?

A cash flow projection estimates future cash inflows and outflows over time to predict ending cash, guide cash management, and inform working capital needs.

How do you calculate operating cash flow?

Operating cash flow is typically net income plus non-cash expenses (like depreciation) plus/minus changes in working capital. Our calculator and guide walk you through each step.

How do I build a monthly cash flow forecast?

Start with opening cash, add projected cash receipts, subtract cash payments, and include growth, seasonality, and one-time items. Use our cash flow projection template (including Excel) to automate the math.

What template or software should I use?

Use our built-in cash flow projection template (and downloadable Excel version) to create projections quickly. It supports scenarios, operating cash flow, and working capital tracking.

What is the net cash flow formula?

Net cash flow = Cash inflows − Cash outflows for the period. The calculator shows the formula at each step and summarizes by month.

Cash Flow Projection Calculator

Project your business cash flow with detailed monthly analysis, scenario planning, and risk assessment to avoid cash shortages and plan for growth.

Cash Flow Projection Planning

Enter your business financial information to project cash flow and identify potential shortages.

Financial Information

Starting cash

Fixed operating expenses (monthly)

Variable operating expenses

0%50%

Cost of goods sold

0%100%

Sales Information

First month's sales

Monthly sales growth

-10%20%

Sales on credit

0%100%

% of sales invoiced (not collected same month)

Credit terms (days)

0120

Starting receivables

Cost Information

Initial inventory balance

Inventory coverage (months)

0.112

Target ending inventory equals next month's COGS × coverage months

Starting payables

Payables terms (days)

090

Projection Period*

Time period for projection

Methodology

This calculator projects cash flow by month using your revenue, expense, and growth inputs. It applies compound monthly growth to revenue, inflation to expenses, and seasonal adjustments. Risk assessment considers minimum cash buffer requirements and cash flow trends. Scenario analysis models optimistic, realistic, and pessimistic business conditions.

Important Disclaimers:

Cash flow projections are estimates based on your inputs and assumptions
Actual results may vary significantly from projections due to market conditions
Regular updates with actual data improve projection accuracy
Consider multiple scenarios and maintain cash reserves for unexpected events
Consult with financial professionals for major business decisions
This tool is for planning purposes and doesn't constitute financial advice

About This Calculator

1. How does the Cash Flow Projection Calculator work?

This calculator projects your business cash flow by analyzing monthly revenue, expenses, and growth assumptions over your chosen time period. It considers factors like revenue growth, expense inflation, seasonality, and one-time events to provide realistic cash flow projections and identify potential cash shortages before they occur.

2. What information do I need to use this calculator?

You'll need your current cash balance, monthly revenue and expense breakdowns (COGS, operating expenses, rent, salaries, utilities, marketing), growth assumptions, and any planned one-time income or expenses. The more accurate your inputs, the more reliable your projections will be.

3. How accurate are cash flow projections?

Cash flow projections are estimates based on your inputs and assumptions. Accuracy depends on the quality of your data and how realistic your growth assumptions are. Use projections as a planning tool and update them regularly with actual results to improve accuracy over time.

4. What should I do if the calculator shows negative cash flow?

Negative cash flow projections indicate potential problems. Consider strategies like: securing a line of credit, reducing expenses, improving collection times, increasing prices, or seeking additional funding. The calculator's recommendations section provides specific guidance based on your risk level.

5. How often should I update my cash flow projections?

Update your projections monthly with actual results and any changes to your business assumptions. This helps you track performance against projections and adjust your plans accordingly. More frequent updates provide better cash flow management.

6. What's the difference between the scenarios shown?

The calculator shows three scenarios: Optimistic (20% revenue increase, 5% cost reduction), Realistic (modest improvements), and Pessimistic (15% revenue decline, 10% cost increase). These help you prepare for different business conditions and understand the range of potential outcomes.