Free Tool
Cash Flow Forecast Planner
A profitable business can still run out of cash — when the money arrives after the bills do. This planner tracks the balance month by month, so the shortfall shows up before it happens.
Planning estimate, not financial advice. All figures on this page are estimates or scenarios for planning purposes only, built from the numbers you enter. They are not financial, tax or legal advice, and no earnings are promised. Read the full financial disclaimer.
What this tool does
Enter the starting balance, then the income and the expenses for each of the next twelve months. The planner shows the closing balance for every month and flags any month that ends below zero — the months where the money runs out even though the year as a whole looks fine.
Cash timing is the whole subject. Revenue forecasts show the year; cash-flow forecasts show the month, and the month is where businesses fail. A big invoice that lands in March does not pay February’s rent, and this planner is built to say so in advance.
Try it
Waiting. Enter the starting balance and the income and expenses for each month, then press Calculate.
How it works
Each month’s closing balance is the previous month’s closing balance plus that month’s income minus that month’s expenses, starting from the starting balance. A month is a shortfall when its closing balance is below zero — the business has spent money it does not have that month, whatever the year as a whole shows.
The lowest balance and its month are reported because they are the decision point: the cash the business needs to hold, and when it needs it, are the two numbers a forecast exists to give.
Assumptions and limitations
A forecast is a plan for cash timing, not a promise about sales.
- Income is cash received, not invoices sent. An invoice that a client pays in 60 days is income in the month it is paid, not the month it was sent.
- Expenses are cash paid, including tax set-aside moved out of the spending account. A tax bill that lands in one month is an expense in that month.
- The forecast assumes the figures you enter. A month with a big expected payment and a late client is still a shortfall month — plan for the late version, not the hopeful one.
- Nothing is stored. The planner runs in your browser and the figures disappear when the page closes — copy the result if you need it.
Worked example
Example (illustrative inputs, not a real business). Starting balance 2,000; income 2,000 a month for two months then 3,000; expenses 2,500 every month:
| Item | Figure |
|---|---|
| Month 1 closing (2,000 + 2,000 − 2,500) | 1,500.00 |
| Month 2 closing | 1,000.00 |
| Month 3 closing (income rises to 3,000) | 1,500.00 |
| Month 12 closing | 6,000.00 |
| Shortfall months | None — the balance stays above zero |
Frequently asked questions
What is the difference between profit and cash flow?
Profit is income minus expenses for a period; cash flow is when the money actually arrives and leaves. A business can be profitable on paper and still run out of cash when a big invoice is paid late — and that timing gap is what this planner shows.
Should income be invoices sent or cash received?
Cash received. An invoice is not money until the client pays it. Enter income in the month the payment actually lands, or the forecast will show cash you do not have.
What do I do about a shortfall month?
Fix it before it arrives: chase the invoice, delay a discretionary expense, negotiate a payment date, or hold a larger starting balance. A shortfall found in the forecast is a plan; a shortfall found in the bank is a crisis.
How far ahead should I forecast?
Twelve months is the useful horizon for a small business — long enough to see the pattern, short enough that the figures stay plausible. Re-run it monthly as real figures replace the guesses.