Cash Flow Calculator
Net cash inflows against outflows to find your net cash flow, closing balance and whether the period ran cash-positive.
How it works
Net cash flow = inflows − outflows · Closing balance = opening balance + net cash flow
Cash flow tracks money actually moving in and out, which is not the same as profit — a profitable business can still run out of cash if customers pay slowly or it buys a lot of inventory. Net cash flow is simply inflows minus outflows for the period, and adding it to your opening balance gives the cash you have left. Watching the closing balance period over period is the earliest warning of a liquidity squeeze.
Worked example
Starting the month with $20,000, a business collects $45,000 in cash and pays out $38,000. Net cash flow is 45,000 − 38,000 = $7,000 positive, so the closing balance is 20,000 + 7,000 = $27,000.
Frequently asked questions
How is cash flow different from profit?
Profit is revenue minus expenses on an accrual basis, counting sales when earned. Cash flow counts only money that actually changes hands. A sale booked today but paid in 60 days is profit now but cash later — which is why profitable firms can still face a cash crunch.
What counts as a cash inflow?
Any cash received: customer payments collected, loan proceeds, owner investment and interest income. It excludes sales that were made but not yet paid.
What does negative cash flow mean?
It means you paid out more than you took in during the period, drawing down your cash balance. It is not always bad — a growth month with big inventory or equipment purchases can be negative — but sustained negative cash flow depletes reserves.
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Educational estimate, not financial advice.