Cash Flow Estimator
Cash Inflows
+$80,000Cash Outflows
-$51,500Summary
Opening Balance $50,000
Total Inflows + $80,000
Total Outflows - $51,500
Net Cash Flow +$28,500
Closing Balance $78,500
About
The Cash Flow Estimator helps businesses and freelancers understand their monthly cash position by tracking all inflows and outflows against an opening bank balance. Add as many income and expense line items as needed — revenue streams, client payments, payroll, rent, marketing, subscriptions, and other costs. The tool instantly calculates total inflows, total outflows, net cash flow, and the closing balance. Positive net cash flow means your business is generating more cash than it consumes; negative means you are drawing down your reserves. Monitoring cash flow regularly is essential — many profitable businesses fail because they run out of cash even when their P&L looks healthy.
How to use
- 1 Enter your opening cash balance — the amount in your bank account at the start of the period.
- 2 Add each cash inflow with a label and amount (revenue, client payments, loans, investments).
- 3 Add each cash outflow with a label and amount (payroll, rent, utilities, marketing, software).
- 4 Click "+ Add inflow" or "+ Add outflow" to add more line items as needed.
- 5 Review the summary: total inflows, total outflows, net cash flow, and closing balance update in real time.
- What is the difference between cash flow and profit?
- Profit is revenue minus expenses on an accrual basis — it includes money owed to you (accounts receivable) and money you owe (accounts payable) even if it has not yet changed hands. Cash flow tracks actual money moving in and out of your bank account. A business can be profitable but cash-flow negative if customers pay late or if large expenses are due before revenue arrives.
- What does a negative closing balance mean?
- A negative closing balance means your projected outflows exceed your opening balance plus all inflows — you will run out of cash before the end of the period. This is a warning sign that requires action: accelerate receivables collection, defer non-critical payments, draw on a credit line, or reduce expenses. Negative cash flow is survivable short-term but must be addressed quickly.
- How is this different from a P&L (profit and loss) statement?
- A P&L reports revenue and expenses on an accrual basis for a period. The cash flow statement tracks actual cash movements. This tool models a simplified direct cash flow statement — useful for near-term planning and stress-testing. For formal accounting purposes you would also need to reconcile non-cash items (depreciation, amortisation) and working capital changes.