The cash flow forecast calculator projects your business cash position month-by-month for 12 months. Enter your baseline income and expenses, then adjust growth rates to see when you might face shortfalls or surpluses.
Month-over-month growth rate
Rent, salaries, insurance, subscriptions
COGS, commissions, shipping — scales with revenue
Equipment, marketing push, or tax payment
How to Create a Cash Flow Forecast
A cash flow forecast is the most important financial tool for small business owners. While profit shows whether your business model works, cash flow shows whether your business will survive next month.
Understanding Fixed vs Variable Costs
Fixed costs stay constant regardless of revenue: rent, salaries, SaaS subscriptions, insurance. Variable costs scale with revenue: inventory/COGS, sales commissions, payment processing fees. For a typical services business, fixed costs are 70-80% of total costs. For e-commerce, variable costs (COGS + shipping) are often 50-70%.
Planning for Cash Crunches
The forecast reveals when your cash balance will be lowest. If you see a negative or very low balance in month 4, you have time to act: arrange a line of credit, accelerate receivables, delay payments, or cut discretionary spending. Without a forecast, you discover the problem when it's already a crisis.
Seasonal Adjustments
Real businesses have seasonal revenue patterns. Adjust the monthly growth rate to negative for slow seasons and higher for peak seasons. A retail business might model -10% growth June-August and +20% growth October-December to capture the holiday swing accurately.
FAQ
What is a cash flow forecast?
A cash flow forecast projects when money comes in and goes out of your business over a future period. Unlike profit/loss, it tracks actual cash movement, including timing. A business can be profitable on paper but run out of cash if customers pay late.
Why is cash flow forecasting important?
Cash flow is the lifeblood of a business. More businesses fail from cash flow problems than from unprofitability. Forecasting helps you anticipate shortfalls (to arrange financing in advance) and surpluses (to plan investments or debt repayment).
What is the difference between cash flow and profit?
Profit is revenue minus expenses (accrual basis). Cash flow is actual money in vs. out (cash basis). If you invoice $100K in December but customers pay in February, you have $100K profit but negative cash flow in December. This timing gap is why forecasting matters.
What is a healthy cash flow?
Positive operating cash flow (cash from your core business) is the key metric. A healthy business should have enough cash to cover at least 2-3 months of operating expenses. Seasonal businesses may need 4-6 months of buffer.
Is this calculator free?
Yes, completely free with no signup. Enter your numbers and get an instant 12-month projection.