Want a better understanding of your small business cash flow? Use our free cash flow calculator, designed to help you understand your operating expenses, liabilities, and cash coming in.
All you have to do is enter your starting cash inflows, enter any cash outflows (both which we’ll provide examples for) and you’ll see if you have a positive cash flow or negative cash flow—complete with advice for wherever you land. Skip doing the math for yourself and let the cash flow calculator do the math for you.
When you understand your total income and expenses, you’ll make more informed decisions that save on costs and drive growth in the long run!
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This financial calculator is provided for informational and illustrative purposes only and should not be considered financial, accounting, or legal advice. We are not accountants, and the information generated by inputs on this tool is not intended to replace personalized guidance from a qualified professional. For a more accurate and tailored understanding of your finances, please consult a licensed accountant or financial advisor.
What cash flow formula is being used?
The formula for calculating cash flow isn’t actually super technical. The hardest part for most is gathering all your information on the money going in and money going out. It can take a ton of time by the time you sort through credit card receipts, review any balance sheets, and go through expenses.
Our calculator uses a simple cash flow forecast. You take your estimated money in over a period of time, and subtract your estimated money out over the same period of time.
The formula is simply:
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What goes into a cash flow forecast?
The money in and money out on our cash flow calculator are just examples of some of the expenses you should include in your cash flow forecast. If you choose to do a more detailed cash flow forecast (which is even easier with our free spreadsheet!), some items you might want to add to your forecasting include:
Interest: Review your interest rates and see how much you’ll be spending on interest for things like credit cards, loans, and more.
Debt repayments: For a lot of small business owners, debt is just a part of the game (and that’s totally normal!). You need to make sure you’re paying debts on time, to avoid even higher interest costs or even financial penalties.
Opening balance: How much money you have at the start of a certain period (or when you open) is your opening balance. Understanding your opening balance is important because it gives you an idea of the present value of cash you have. In the positive, and you should aim to keep doing what you’re doing, or you have money to invest in large bets. If you’re in the negative, you may want to tighten spending the next period.
Want to read more about cash flow forecasting? Click here.
Want a copy of our free cash flow forecasting spreadsheet, with more line items and all the formulas created for you? Click here.
How does a business cash flow calculation differ from personal finances or a personal cash flow calculation?
When you’re running a small business, your personal finances and business finances can get blurred. You might find yourself using your personal line of credit to purchase materials, dipping into your business savings accounts for personal cash flow issues, or adding loose cash you have from your personal life into your business to boost your net cash flow at the end of the month.
And this can be harmless when you’re just starting out, but it’s not recommended. It makes understanding your business operating cash flow blurry, creating challenges for you when it comes to creating your monthly cash flow statements. You may find yourself undershooting on business metrics, without accounting for all the business expenses you’re going to find on the cash receipts from your personal expenses.
It can also be messy when you’re trying to plan for your business’ future, but you’re mixing up business and personal spending. What do you do about loan payments on a personal loan, but you’ve been taking from your business’ working capital to pay that down? Or what about when operating activities at your business are funded by your personal net income, leading you to severely underestimate your future cash flow by missing expenses?
The best way to keep your personal and professional finances apart is with fully separate accounts, maybe even separate banks. There are banking solutions designed especially for small businesses, like Relay.
Make cash flow calculations a breeze with Relay
Feeling more inspired to take control of your cash flow? Relay can help.
With Relay, you can:
✅ Get 20 free business checking accounts: Know where every dollar is going with dedicated accounts, free of charge. Have accounts dedicated to accounts receivable, accounts payable, profit, expenses—whatever helps you stay organized!
✅ Automate your savings: Relay helps you add more breathing room to your budget with automatic savings, plus cash back on Relay Visa credit cards.
✅ Issue 50 virtual credit or debit cards: Understanding your cash flow is easier than ever with dedicated cards for your entire team.
✅ Simplify your expense management: Want to organize spending and stay on track with your budget? Relay lets you quickly issue debit cards for new expense categories, project expenses, or separate teams.
✅ Control debit and credit cards from anywhere: No phone calls required. Relay allows you to monitor transactions in real time, set spending limits, and freeze cards right from your phone or computer.
✅ Integrate your accounting software: Relay allows you to sync detailed banking data directly into QuickBooks Online or Xero, making bookkeeping a breeze.
Get cash flow clarity in just a few taps. Relay is free—and you can sign up today. Click here to get started.
