Net cash in vs out for a period. The Cash Flow Calculator takes opening cash balance, cash received in the period, cash paid out in the period and returns net cash flow plus closing cash balance, months of outflow covered by closing cash. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Cash Flow Calculator works
Cash flow ignores accounting timing and simply tracks money in and out. A profitable business with negative cash flow is a common and dangerous combination.
Worked example
With the example values (opening cash balance of $100,000, cash received in the period of $450,000, cash paid out in the period of $380,000), the net cash flow is $70,000.00; closing cash balance $170,000.00, months of outflow covered by closing cash 0 months. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is net cash flow calculated?
net cash flow = cash in − cash out; closing balance = opening balance + net cash flow.
Which figures do I need?
Opening cash balance, cash received in the period, cash paid out in the period. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
