Finance & Business
Cash Flow Calculator - Calculate Operating Cash Flow
Calculate operating cash flow, free cash flow, and cash flow projections. Analyze cash inflows, outflows, and runway. Essential for business financial planning and management.
Use Cash Flow Calculator - Calculate Operating Cash Flow to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
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About this tool
Our Cash Flow Calculator is the most comprehensive free tool for analyzing and projecting business cash flow. Cash flow - the movement of money in and out of your business - is more critical than profit for survival. A profitable business can fail if it runs out of cash to pay bills, while cash-rich businesses can weather temporary losses. This calculator computes Operating Cash Flow (cash generated from business operations), Free Cash Flow (cash available after capital investments), and cash runway (how long current cash will last). Understanding these metrics is essential for financial planning, avoiding cash crunches, and making informed business decisions.
Operating Cash Flow measures cash generated from core business activities. It starts with net income and adjusts for non-cash items like depreciation and changes in working capital (accounts receivable, inventory, accounts payable). Positive operating cash flow means your business operations generate cash - the foundation of business health. Negative operating cash flow signals trouble - you're burning more cash than you generate. The calculator helps you understand the difference between accounting profit and actual cash - a business can show profit but have negative cash flow if customers don't pay quickly or inventory builds up.
Free Cash Flow (FCF) goes a step further by subtracting capital expenditures (equipment, technology, facility improvements). FCF represents cash truly available for growth, debt repayment, or distributions to owners. It's the most important metric for business valuation and investor analysis. Positive FCF means you can fund growth internally without outside capital. Negative FCF is common in growth phases when you're investing heavily, but it must be funded by reserves, loans, or equity. The calculator shows both operating and free cash flow, helping you understand how investment needs affect available cash.
Cash runway is your survival timeline - how many months you can operate with current cash before running out. Formula: Current Cash ÷ Monthly Cash Burn Rate. If you have $100K cash and burn $20K monthly, your runway is 5 months. Runway under 6 months requires immediate action: cut costs, accelerate collections, raise capital, or increase sales. The calculator projects your ending cash balance and alerts you to potential shortfalls. It's completely free, requires no registration, and works entirely in your browser. Perfect for business owners, CFOs, startups, and anyone managing business finances.
Usage examples
Profitable Service Business
$50K revenue, $35K expenses, $15K collections, $12K payments
Operating CF: +$18K, Free CF: +$16K (after $2K capex), Positive
Growth Stage Startup
$30K revenue, $60K expenses, $100K beginning cash
Operating CF: -$30K/month, Runway: 3.3 months, Need funding
Retail Store
$80K sales, $50K COGS, $25K expenses, $10K inventory increase
Net income $5K, Operating CF: -$5K (inventory buildup)
Manufacturing
$200K revenue, $150K expenses, $30K capex, $20K depreciation
Net income $50K, Operating CF: $70K, Free CF: $40K
How to use
- Enter cash inflows: sales revenue, collections, investments, loans
- Input cash outflows: suppliers, payroll, rent, taxes, loan payments
- Specify beginning cash balance
- Add non-cash expenses like depreciation (for operating CF)
- Enter capital expenditures (for free cash flow)
- View comprehensive cash flow analysis with runway projection
Benefits
- Calculate operating and free cash flow
- Cash runway and survival timeline
- Detailed inflow and outflow breakdown
- Working capital impact analysis
- Capital expenditure planning
- Monthly cash flow projection
- Ending cash balance forecast
- Instant what-if scenario analysis
- Alerts for cash shortfalls
- Mobile-friendly for real-time monitoring
- No registration required - free
- Essential for financial planning
FAQs
What is the difference between profit and cash flow?
Profit is revenue minus expenses on the income statement (accrual basis). Cash flow is actual cash in minus cash out. Key differences: 1) Revenue is recognized when earned, not when cash is received. 2) Expenses include non-cash items like depreciation. 3) Cash flow includes loan proceeds, capital purchases, and principal payments that don't affect profit. A business can be profitable but cash-poor if customers pay slowly or inventory builds up.
What is operating cash flow?
Operating cash flow (OCF) is cash generated from core business operations. Formula: Net Income + Depreciation + Changes in Working Capital. It shows whether operations generate or consume cash. Positive OCF means your business is self-sustaining. Negative OCF means you're burning cash and need external funding. OCF is the first section of the cash flow statement and the most important indicator of business health. Aim for consistently positive OCF.
What is free cash flow and why does it matter?
Free Cash Flow (FCF) = Operating Cash Flow - Capital Expenditures. It's cash available after maintaining/growing the business. FCF determines what you can spend on growth, debt repayment, or distributions. It's the most important metric for business valuation - investors value businesses based on future FCF. Positive FCF means you're generating more cash than needed for operations and maintenance. Negative FCF requires external funding but is acceptable during growth phases.
How long should my cash runway be?
Minimum 6 months runway for established businesses, 12-18 months for startups. Runway = Current Cash ÷ Monthly Cash Burn. Under 6 months is danger zone - immediately cut costs, accelerate collections, or raise capital. Under 3 months is crisis - radical action required. Longer runway provides flexibility to weather downturns, invest in growth, and negotiate from strength. Always monitor runway monthly and take action early when it shortens.
How can I improve my cash flow?
Accelerate inflows: invoice promptly, offer discounts for fast payment, require deposits, improve collections, switch to subscription/recurring revenue. Slow outflows: negotiate longer payment terms with suppliers, manage inventory to avoid excess, delay non-critical purchases, lease instead of buying equipment. Manage working capital: reduce Days Sales Outstanding (DSO), optimize inventory turnover, extend Days Payable Outstanding (DPO). Even profitable businesses need good cash flow management.
What is working capital and how does it affect cash flow?
Working Capital = Current Assets - Current Liabilities (typically Accounts Receivable + Inventory - Accounts Payable). Increases in working capital consume cash: more AR or inventory ties up cash. Decreases generate cash: collecting AR or reducing inventory frees cash. Fast-growing businesses often have negative cash flow despite profits because revenue growth requires more working capital. Manage working capital by improving collection speed, optimizing inventory, and negotiating better supplier terms.
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