Finance Lab
Forward cash flow forecast
Show the month-by-month cash position your current trading produces, and the month it is at its lowest.
Each month: cash collected = revenue earned one collection delay earlier, grown at the rate entered. Gross profit = collected × margin. Operating result = gross profit − overheads. Net cash = operating result − tax set aside − loan repayments. Closing cash carries forward.
Step 1 · Enter your figures
Every box starts with an example figure. Replace each one with your own — the result updates as you type. Nothing you type is sent anywhere or stored.
Sales invoiced in a normal month today, excluding GST.
The rate revenue changes each month. Enter a negative figure if it is falling.
Gross profit as a percentage of revenue, after the direct cost of delivering the work.
Wages, rent, marketing and overheads in a normal month, excluding the direct cost of sales.
The rate overheads change each month.
The cash you are actually starting from, net of any overdraft already drawn.
Principal and interest paid each month on all facilities.
The rate you set aside on operating profit. Confirm the rate that applies to your structure.
Months between invoicing and the cash arriving. Enter 0 if you are paid on delivery.
How far forward to run the forecast.
Step 2 · Read the result
Lowest cash position
$32,000
Reached in month 1.
- Closing cash at the end of the forecast
- $77,387
- Net cash generated over the period
- -$2,613
- Month cash first runs out
- 0.0 monthsCash stays positive throughout on these figures.
- Average monthly net cash
- -$218
- Closing cash at the end of the forecast$77,387
- Net cash generated over the period-$2,613
- Average monthly net cash-$218
What this answer rests on (14)
- Monthly revenue now$120,000
You entered this
Sales invoiced in a normal month today, excluding GST.
- Monthly revenue growth1.0%
You entered this
The rate revenue changes each month. Enter a negative figure if it is falling.
- Gross margin45.0%
You entered this
Gross profit as a percentage of revenue, after the direct cost of delivering the work.
- Monthly operating costs$42,000
You entered this
Wages, rent, marketing and overheads in a normal month, excluding the direct cost of sales.
- Monthly cost growth0.5%
You entered this
The rate overheads change each month.
- Cash in the bank today$80,000
You entered this
The cash you are actually starting from, net of any overdraft already drawn.
- Monthly loan repayments$6,000
You entered this
Principal and interest paid each month on all facilities.
- Tax set aside on profit25.0%
You entered this
The rate you set aside on operating profit. Confirm the rate that applies to your structure.
- Collection delay1.0 months
You entered this
Months between invoicing and the cash arriving. Enter 0 if you are paid on delivery.
- Months to forecast12.0 months
You entered this
How far forward to run the forecast.
- Revenue and overheads move at the constant monthly rates entered, with no seasonality.
The calculator applied this
- Cash is collected in full one collection delay after it is earned; no bad debts are allowed for.
The calculator applied this
- Tax is set aside on operating profit at the rate entered and only where the month is profitable.
The calculator applied this
- Capital spend, drawings, GST timing and one-off items are excluded unless included in overheads.
The calculator applied this
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Save to my workspaceRead this before you rely on the result
- Net cash generated over the period is negative at -$2,613. On these figures the outcome is a shortfall, not a return.
- Average monthly net cash is negative at -$218. On these figures the outcome is a shortfall, not a return.
What this means for you
The month your cash is at its lowest on your current trading, and whether it runs out before then.
How to read it
- The low point matters more than the closing balance. A forecast that ends well can still fail in month five.
- The month cash first runs out is the date any funding has to be in place by — arranged before it, not during it.
- Change the collection delay by one month and watch the low point move. For most owners that is the largest single lever.
Watch out for
- Forecasting invoices rather than cash. Revenue earned is not revenue banked.
- Leaving out drawings, tax instalments and capital spend, which makes the forecast look far healthier than the bank account.
- Growth assumptions carried forward unchanged. Growth consumes cash before it produces it.
Assumptions behind this result
- Revenue and overheads move at the constant monthly rates entered, with no seasonality.
- Cash is collected in full one collection delay after it is earned; no bad debts are allowed for.
- Tax is set aside on operating profit at the rate entered and only where the month is profitable.
- Capital spend, drawings, GST timing and one-off items are excluded unless included in overheads.
General information only. This calculator does not take your circumstances into account and is not financial, tax, legal or investment advice. Confirm every rate, threshold and figure with your own adviser before acting.
Related calculators
Other tools in cash and trading.
Take this further
Members run this calculator on their own recorded figures, save the workings to their workspace, export them to Word or Excel, and read the lessons that teach the thinking behind the result.