Finance Calculator
Cash Flow Forecast Calculator
Project your monthly cash inflows, outflows, and closing cash position over 6 months. Identify when funding gaps are likely to occur so you can plan ahead.
Enter forecast details for each month
What is Cash Flow Forecast?
A cash flow forecast projects the expected cash inflows and outflows over a future period. It helps businesses anticipate shortfalls, plan working capital needs, and demonstrate viability to lenders.
How does this cash flow forecast work?
This calculator uses a simple rolling balance approach. For each month, it takes the opening cash balance, adds expected inflows, and subtracts expected outflows to calculate the closing cash position.
Net Cash Flow = Inflows - Outflows
Closing Balance = Opening Balance + Net Cash Flow
Next Month's Opening = Previous Month's Closing
If the closing balance falls below zero in any month, this indicates a potential funding gap - meaning the business may need additional cash (e.g. from an overdraft, invoice finance, or loan) to cover its obligations that month.
Assumptions and caveats
- •Inflows and outflows are entered as monthly totals. Real cash flow may vary within the month.
- •This is a simplified model. It does not account for timing of individual receipts and payments.
- •One-off items such as capital expenditure, tax payments, or loan drawdowns should be included in the appropriate month.
- •The forecast does not factor in interest on cash balances or overdraft costs.
Worked Example
Scenario
A wholesale distributor has monthly revenue of GBP 180,000, cost of goods of GBP 126,000, operating expenses of GBP 32,000, and loan repayments of GBP 4,500.
Calculation
- Monthly Cash Inflow = GBP 180,000
- Monthly Cash Outflow = 126,000 + 32,000 + 4,500 = GBP 162,500
- Net Monthly Cash Flow = 180,000 - 162,500 = GBP 17,500
- Projected 6-month surplus = 17,500 x 6 = GBP 105,000
What This Means
The business generates a net cash surplus of GBP 17,500 per month. However, this assumes all customers pay on time. In practice, if AR days stretch from 30 to 45 days, the business may face a temporary cash shortfall of approximately GBP 90,000 while waiting for payment. This is a common scenario where invoice finance bridges the gap between invoicing and collection.
Frequently asked questions
A cash flow forecast is a projection of expected cash inflows and outflows over a future period, typically month by month. It helps businesses anticipate when cash will be short, plan for major payments, and decide when additional funding may be needed.
Cash flow is the most common reason small businesses fail. A forecast helps identify gaps before they become crises, supports better supplier and debtor management, and provides lenders with evidence of financial planning when applying for funding.
A cash flow forecast is an estimate, not a guarantee. The goal is to identify trends, timing risks, and funding gaps rather than predict exact figures. Regular updating improves accuracy over time.
Explore related research
Anticipating a funding gap?
Speak to the Spark team about funding options to bridge short-term cash flow gaps before they become problems.
Contact the Spark Team