Business Cash Flow Forecast Calculator
Project your 12-month cash position. Enter your monthly figures to see cumulative cash balance, lowest cash point, and break-even month.
Monthly Inputs
All figures are monthly averages
Average monthly sales / invoiced revenue
Materials, direct labour, delivery
Rent, utilities, salaries, insurance
Loan repayments, HP, leasing
Cash in bank at start of month 1
Spread equally over months 1–3
Payment terms — days to receive payment (debtor days)
Why Cash Flow Forecasting Matters
More businesses fail from cash flow problems than from lack of profitability. A business can be profitable on paper while simultaneously running out of cash — this typically happens when customers pay slowly, costs are paid upfront, or rapid growth creates working capital strain.
The Payment Terms Effect
If you invoice £10,000 in January on 30-day terms, you receive the cash in February. This lag means you must fund one month of costs before receipts arrive. At 60-day terms, you fund two months. This calculator adjusts receipts for your payment terms automatically.
Improving Your Cash Flow
- Invoice immediately— every day of delay is a day's extra credit to your customer
- Offer early payment discounts — 1–2% discount for payment within 7 days is often worth it
- Use invoice finance — factors and invoice discounters can advance 80–90% of invoice value immediately
- Negotiate supplier terms — extend your payment days to match your debtor days
- Maintain a cash reserve — aim for 3 months of fixed costs as a buffer
When to Seek Finance
If your forecast shows a cash shortfall, act early. Overdrafts, revolving credit facilities, and invoice finance are easier to arrange when you are not yet in crisis. Show your cash flow forecast to your bank or a commercial finance broker.