Cash Flow Forecast Calculator
Project your business cash flow over 12 months. Switch between base, optimistic, and pessimistic scenarios to stress-test your forecast against different income and cost outcomes.
How it's calculated
Closing balance = Opening balance + Inflows − Outflows
Each month's closing balance becomes the next month's opening balance.
Frequently Asked Questions
- Why is cash flow different from profit?
- Profit is revenue minus expenses, recorded when they are earned or incurred rather than when money moves. Cash flow tracks the money itself, going in and out. The gap between them is what catches businesses out. You can be profitable on paper and still run out of cash — if customers pay in 60 days while your own costs fall due in 30, the profit is real but the money is not there yet.
- What is a healthy cash reserve for a small business?
- Most advisers suggest holding 3–6 months of operating expenses in cash. The reserve covers three things: customers paying later than agreed, costs you did not see coming, and a dip in revenue. Where you sit in that range depends on how predictable your income is. Businesses with lumpy or seasonal revenue should aim for the upper end.
- How do I use the scenario comparison?
- Start by entering your base case income and costs — your realistic expectation. Then set the optimistic and pessimistic multipliers around it. A multiplier works as a proportion of the base. An optimistic income multiplier of 1.2 models income 20% higher than base. A pessimistic costs multiplier of 1.15 models costs 15% higher. Running all three together shows the range you need to survive, not just the outcome you hope for.
- How do I improve a negative cash flow forecast?
- There are five practical levers. Invoice earlier, so the clock starts sooner. Shorten your payment terms. Delay any spending that is not essential. Negotiate longer terms with your own suppliers. Arrange an overdraft or revolving credit facility before you need it — credit is far easier to obtain while your figures still look healthy than once the gap has opened up.