Cash Flow Calculator
Calculate and analyze cash flows from operations, investing, and financing activities. Essential for understanding business liquidity, cash burn rate, and financial runway.
Cash Flow Analysis Type
Operating Activities
Cash Inflows from Operations
Cash Outflows from Operations
Investing Activities
Cash Outflows (Investments)
Cash Inflows (Disposals)
Financing Activities
Cash Inflows (Financing)
Cash Outflows (Financing)
Cash Position & Burn Rate
Working Capital Changes
Current Assets
Current Liabilities
Cash Flow Analysis Results
Ready to Calculate
Enter your cash flow details and click "Calculate Cash Flow"
Quick Examples
Key Metrics
Cash Flow Health
Cash Flow Tips
- Invoice promptly and follow up on receivables
- Negotiate longer payment terms with suppliers
- Maintain 3-6 months of operating expenses in cash
- Monitor cash flow weekly, not just monthly
- Use credit lines for short-term cash needs
Important Ratios
Warning Signs
- Consistent negative operating cash flow
- Cash runway less than 3 months
- Growing accounts receivable balance
- Using debt to cover operating losses
- Declining cash reserves
What is a Cash Flow Calculator?
A cash flow calculator is an essential financial tool that helps businesses analyze and project their cash inflows and outflows across three key activities: operating, investing, and financing. This comprehensive tool goes beyond basic calculations to provide insights into cash burn rates, runway projections, working capital changes, and overall business liquidity.
Our advanced cash flow calculator incorporates all components of a professional cash flow statement, including working capital adjustments, depreciation, and timing differences. Whether you're a startup monitoring burn rate, a growing business planning expansion, or an established company optimizing working capital, this tool provides the critical cash flow insights needed for informed financial decision-making.
How to Use This Cash Flow Calculator
Our calculator makes cash flow analysis comprehensive yet accessible. Follow these steps to analyze your business cash position:
- Select Analysis Type: Choose between Operating, Investing, Financing, Comprehensive, or Burn Rate analysis.
- Set Time Period: Select monthly, quarterly, annual, or custom period for analysis.
- Enter Operating Activities: Input cash inflows from sales and outflows for operating expenses.
- Enter Investing Activities: Input capital expenditures and proceeds from asset sales.
- Enter Financing Activities: Input loan proceeds, equity investments, and debt repayments.
- Configure Cash Position: Set beginning cash balance, desired minimum cash, and projection period.
- Calculate: Click "Calculate Cash Flow" to see comprehensive cash flow analysis.
- Analyze Results: Review cash flow statement, burn rate, runway, and projections.
Cash Flow Components Explained
Operating Activities
Cash generated or used in the normal course of business operations. This includes cash from sales, payments to suppliers, employee wages, taxes, and other day-to-day business activities. Positive operating cash flow indicates the business can sustain itself without external funding.
Investing Activities
Cash used for or generated from long-term asset investments. This includes purchases of equipment, property, investments, and proceeds from selling these assets. Negative investing cash flow is normal for growing businesses, indicating investment in future growth.
Financing Activities
Cash from or paid to investors and creditors. This includes proceeds from loans, equity investments, debt repayments, dividend payments, and stock repurchases. Positive financing cash flow indicates external funding, while negative indicates returning capital to investors.
Burn Rate & Runway
Critical metrics for startups and cash-strapped businesses. Burn rate measures how quickly a company is spending its cash reserves, while runway calculates how long the business can survive at the current burn rate before needing additional funding or becoming profitable.
Why Cash Flow Analysis Matters
Cash flow is often called "the lifeblood of a business" because it directly impacts survival and growth. Unlike profit (which is an accounting concept), cash flow represents actual money moving in and out of your business. Understanding cash flow is critical because:
Business Survival
82% of small businesses fail due to poor cash flow management
Growth Planning
Determines capacity for expansion, hiring, and capital investments
Risk Management
Identifies cash shortages before they become critical problems
Investor Confidence
Strong cash flow management increases investor trust and valuation
Cash Flow vs. Profit: Key Differences
| Aspect | Cash Flow | Profit | Why It Matters |
|---|---|---|---|
| Timing | Actual cash movements | Revenue/expense recognition | Cash flow shows when money actually moves |
| Depreciation | Non-cash expense (added back) | Reduces reported profit | Profitable companies can have negative cash flow |
| Working Capital | Affected by timing differences | Recorded when earned/incurred | Growth often consumes cash before generating profit |
| Capital Expenditures | Cash outflow when paid | Depreciated over asset life | Large investments can strain cash but not profits |
| Loan Principal | Cash outflow when paid | Not an expense (balance sheet) | Debt payments affect cash but not profitability |
| Business Health | Short-term survival | Long-term viability | Need both positive cash flow and profit for success |
Key Cash Flow Formulas & Calculations
Cash Flow Statement Formulas
Operating Cash Flow Formulas
Burn Rate & Runway Formulas
Burn Rate Calculations
- Gross Burn = Total Monthly Cash Outflows
- Net Burn = Cash Outflows - Cash Inflows
- Average Burn = (∑ Monthly Burns) ÷ Number of Months
Runway & Survival Metrics
- Runway = Cash Balance ÷ Monthly Net Burn
- Breakeven Point = Fixed Costs ÷ Contribution Margin
- Cash Conversion Cycle = DSO + DIO - DPO
Cash Flow Management Strategies
| Strategy | Action Steps | Impact | Best For |
|---|---|---|---|
| Accelerate Receivables | Offer early payment discounts, invoice immediately, automate follow-ups | Improves cash inflow timing | Businesses with long payment terms |
| Delay Payables | Negotiate longer terms, schedule payments strategically | Preserves cash longer | Businesses with strong supplier relationships |
| Optimize Inventory | Implement JIT, reduce safety stock, improve turnover | Reduces tied-up cash | Manufacturing and retail businesses |
| Manage Growth | Control expansion pace, secure funding before growth | Prevents cash crunch during growth | High-growth startups and businesses |
| Maintain Buffer | Keep 3-6 months operating expenses in cash | Provides safety net for emergencies | All businesses, especially seasonal |
| Use Technology | Implement cash flow forecasting software, automate tracking | Improves accuracy and timeliness | Businesses with complex cash flows |
Frequently Asked Questions (FAQ)
What's the difference between cash flow and profit?
Profit is an accounting concept that measures revenue minus expenses for a period, regardless of when cash is actually received or paid. Cash flow measures actual cash movements in and out of the business. A business can be profitable but have negative cash flow (common during growth phases), or have positive cash flow but be unprofitable (possible with depreciation and non-cash expenses). Profit shows long-term viability, while cash flow shows short-term survival ability.
How much cash should my business keep in reserve?
The ideal cash reserve depends on your business type, industry, and risk tolerance:
• Startups/High-risk: 6-12 months of operating expenses
• Established businesses: 3-6 months of operating expenses
• Seasonal businesses: Enough to cover the entire off-season plus 2-3 months
• Stable, predictable businesses: 1-3 months of operating expenses
Calculate: Minimum Cash Reserve = (Monthly Operating Expenses × Desired Months) - Current Assets.
Always maintain enough to cover unexpected emergencies and opportunities.
What is a good cash burn rate for a startup?
Acceptable burn rates vary by stage and funding:
By Funding Round:
• Pre-seed: $10K-$50K/month (18-24 month runway)
• Seed: $50K-$150K/month (15-18 month runway)
• Series A: $150K-$500K/month (12-18 month runway)
• Series B+: Based on growth metrics and milestones
General Guidelines:
• Keep at least 12 months of runway after each funding round
• Burn rate should support growth targets (typically 10-15% month-over-month)
• Monitor unit economics: LTV/CAC ratio should be > 3:1
• Reduce burn if growth isn't achieving key metrics
How can I improve my operating cash flow?
Improving operating cash flow requires both increasing inflows and managing outflows:
Accelerate Inflows:
1. Offer 2% discount for payment within 10 days (2/10 net 30)
2. Invoice immediately upon delivery/service completion
3. Require deposits or progress payments for large projects
4. Implement automated payment reminders
5. Consider factoring for slow-paying customers
Manage Outflows:
1. Negotiate longer payment terms with suppliers
2. Schedule payments to align with cash inflows
3. Use credit cards strategically (30-day float)
4. Review all recurring expenses quarterly
5. Implement purchase approval processes
What's the cash conversion cycle and why does it matter?
The Cash Conversion Cycle (CCC) measures how long it takes for a business to convert its
investments in inventory and other resources into cash flows from sales. The formula is:
CCC = Days Sales Outstanding (DSO) + Days Inventory Outstanding (DIO) - Days Payables Outstanding (DPO)
• DSO: Average days to collect receivables (lower is better)
• DIO: Average days inventory is held (lower is better)
• DPO: Average days to pay suppliers (higher is better)
A shorter CCC means the business is more efficient at converting investments into cash.
Negative CCC (when DPO > DSO + DIO) means the business gets paid by customers before paying
suppliers - the ultimate cash flow position achieved by companies like Amazon and Walmart.
When should I worry about my cash flow?
Immediate action is needed when you see these warning signs:
Critical Red Flags (Act Immediately):
• Cash runway less than 3 months
• Consistently negative operating cash flow for 3+ months
• Using credit cards/personal funds to pay business expenses
• Missing payroll or vendor payments
• Overdrawn bank accounts
Early Warning Signs (Take Action):
• Declining cash reserves for 2+ months
• Accounts receivable aging over 60 days increasing
• Inventory growing faster than sales
• Revenue growth not translating to cash flow
• Increasing reliance on debt for operations
Regular cash flow monitoring (weekly for struggling businesses, monthly for stable ones)
helps catch problems early when they're easier to fix.
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