Business
Cash Flow Forecast Calculator
Project the ending cash balance over an entered number of months using opening cash, first-month cash receipts, recurring monthly cash payments, and monthly receipt growth. The calculator also reports first-month net cash flow, total forecast change, and ending expense coverage so the direction and scale of the cash position remain visible.
First-month net cash flow-
Projected ending cash-
Forecast cash change-
Ending cash expense coverage-
Exact scenario comparison
Monthly receipt growth (%) scenarios
Exact scenario comparisonMonthly receipt growth (%) changes while all other entered assumptions remain constant.
| Monthly receipt growth (%) | First-month net cash flow | Projected ending cash | Forecast cash change | Ending cash expense coverage |
|---|
Period-by-period detail
Monthly schedule and annual summary
How to use Cash Flow Forecast Calculator
- Enter opening cash, expected first-month collections, recurring cash payments, forecast months, and the monthly change assumed for receipts.
- Review first-month net cash flow, accumulated ending cash, forecast change, and ending expense coverage across the entered horizon.
- Replace smooth assumptions with dated collection, payroll, tax, debt, capital, and irregular-payment schedules whenever timing can create a cash shortfall.
Calculator guide
Understanding Cash Flow Forecast Calculator
A cash-flow forecast follows the cash balance period by period rather than treating profit as cash. This simplified model compounds monthly receipts at the entered rate, holds monthly cash payments constant, and carries each month's net movement into the next month's opening balance.
Calculation method
How the calculation works
Project monthly receipts with the entered growth rate, subtract recurring cash payments, and accumulate each period from opening cash. Project monthly receipts with the entered growth rate, subtract recurring cash payments, and accumulate each period from opening cash.
Worked situations
Practical examples
- With $95,000 of first-month receipts and $82,000 of payments, the first modeled month adds $13,000 before considering any later receipt growth.
- A 1% monthly receipt-growth assumption increases each following month's receipts from the preceding month rather than adding one fixed dollar amount.
- If a large annual insurance payment occurs in month six, it should not be hidden inside a smooth monthly average when the timing could create a temporary cash deficit.
Better inputs
Useful tips
- Enter amounts on a cash basis: use expected collection and payment dates rather than invoice or revenue-recognition dates.
- Prepare downside cases for slower collections, lower sales, higher payroll, tax payments, debt service, and capital spending.
- Reconcile the opening balance to a bank or treasury record and refresh the forecast with actual results at a consistent cadence.
Before relying on the result
Limitations and common mistakes
- Monthly cash payments remain constant, while only receipts use the entered compound growth rate.
- Seasonality, receivable delays, payment terms, financing flows, taxes, capital expenditure, dividends, and one-time events are excluded.
- The ending balance can appear adequate even when an intra-month or intermediate-month shortfall would require funding.
Reference
Key terms
- Opening cash
- Cash balance available at the beginning of the first forecast month.
- Cash receipts
- Money expected to be collected during a forecast month.
- Cash payments
- Money expected to leave the business during a forecast month.
- Expense coverage
- Ending cash divided by the entered recurring monthly cash payments.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
Is this forecast the same as an income statement?
No. It focuses on modeled cash collections and payments, which can occur in different periods from revenue and expense recognition.
Can monthly receipt growth be negative?
Yes, within the permitted input range. A negative rate reduces modeled receipts each month and should be used deliberately as a scenario assumption.
Why is one ending balance not enough for treasury planning?
Funding risk depends on the lowest balance and exact timing, not only the final month. A detailed forecast should inspect every period.
How should irregular payments be handled?
Use a more detailed monthly schedule that places each irregular payment in its expected month; do not rely on an average when timing is material.