Accounting Cash Flow (Monthly) Calculator
Estimate your monthly net cash flow and closing cash balance from operating cash receipts, expenses, debt payments and capital spending.
Overview
This monthly accounting cash flow calculator estimates how cash moves through your business over one month. Enter your opening cash, customer receipts, other inflows, operating payments, payroll, debt payments, and capital spending to see your net cash flow and expected closing balance.
How it works
The calculator adds cash sales, customer collections, and other receipts to find total cash inflows. It then adds operating expenses, payroll, debt repayments, and capital spending to find total cash outflows. Net cash flow is inflows minus outflows. Adding net cash flow to the opening cash balance gives the estimated closing cash balance. This is a cash-based view, so it focuses on when money is paid or received rather than when income or expenses are recorded in accounting records.
How to use this calculator
- 1Enter the cash available at the beginning of the month.
- 2Add cash sales and payments collected from customers.
- 3Include any other cash received during the month.
- 4Enter operating expenses, payroll, debt payments, and capital spending paid in cash.
- 5Review your net monthly cash flow and estimated closing cash balance.
Example Calculation
Opening cash balance
$25,000
Cash sales received
$18,000
Customer payments collected
$12,000
Other cash inflows
$1,000
Operating expenses paid
$14,500
Payroll payments
$8,500
Debt repayments
$2,000
Capital spending
$1,500
Net cash flow
$4,500
With cash inflows of 31,000 and cash outflows of 26,500, the business has estimated net cash flow of 4,500 and a closing cash balance of 29,500.
Frequently asked questions
What is monthly cash flow?
Monthly cash flow is the difference between cash received and cash paid during a month. Positive cash flow means more cash came in than went out.
Is cash flow the same as profit?
No. Profit is based on income earned and expenses incurred, while cash flow tracks when money is actually received or paid. Credit sales and unpaid bills can create differences between the two.
Should loan repayments be included in cash flow?
Yes. Loan principal and interest payments reduce available cash, so they should be included as cash outflows for the month.
Should equipment purchases be included?
Yes. Buying equipment or other long-term assets is a cash outflow even though it may be treated differently from an expense in accounting profit calculations.
What does a negative net cash flow mean?
It means your entered cash outflows exceed your cash inflows for the month. Your opening cash balance may cover the gap, but recurring negative cash flow can need closer review.
How can I improve the accuracy of the estimate?
Use bank transactions, payroll records, supplier payment schedules, customer collection forecasts, and known debt payment dates. Update the figures as payments are received or made.
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Assumptions and warnings
Assumptions
- All amounts are cash actually received or paid during the selected month, rather than revenue earned or expenses incurred.
- The opening cash balance is available and unrestricted at the start of the month.
- Cash inflows and outflows are entered once only and do not include non-cash accounting items such as depreciation.
- Results are estimates based on the figures entered and do not account for timing differences within the month.
- Currency, sales tax treatment, bank overdrafts, and accounting classifications should be applied consistently in the amounts entered.
Warnings
- This calculator provides a cash flow estimate only and is not accounting, tax, or financial advice.
- A positive monthly cash flow does not necessarily mean all future obligations or liabilities can be met.