Cash Flow Forecasts: Know Your Balance Before It Drops
Profit on paper and cash in the bank are different things. A month-by-month forecast shows when the balance dips, which is when a business actually runs into trouble.
What is the Cash Flow Forecast Calculator?
Enter opening cash, expected monthly revenue and expenses, and the number of months, and the tool projects each month-end balance. These are estimates based on the figures you enter, not a promise of future sales, so check them against real costs and current market conditions.
How to use it
- Enter opening cash and monthly revenue.
- Enter monthly expenses and the number of months.
- Click Forecast Cash Flow and check each month-end balance.
Worked example
With 5000 opening cash, 3000 revenue, and 2200 expenses, monthly net cash flow is 800, and the balance after 6 months is 9800.
What if revenue varies by month?
This tool uses a flat monthly figure for simplicity. For seasonal businesses, run it once per season with that season's figures and compare the results.
Frequently asked questions
Is a positive forecast a guarantee?
No. It only follows from the numbers you entered, so a wrong sales guess gives a wrong forecast.
What should I do if the balance goes negative?
Plan earlier: cut costs, delay spending, arrange funding, or bring sales forward before that month arrives.