Net Cash Flow Calculator

Cash flow is the actual movement of money in and out of a business—distinct from accounting profit which includes non-cash items. A business can be profitable but run out of cash (illiquidity crisis). For example, a company with ₹1 crore annual profit might have negative cash flow if it's tying up ₹1.5 crore in inventory. Cash flow management is the #1 reason businesses fail, ahead of poor product or market. Understanding cash flow requires analyzing: operating cash flow (cash from business operations), investing cash flow (buying/selling assets), and financing cash flow (loans, investment, dividends). Monthly cash flow forecasting helps identify shortfall months, enabling proactive borrowing or cost reduction. For startups with limited capital, monthly cash flow tracking is critical to prevent running out of cash. For mature businesses, positive operating cash flow (before investments) indicates business health. This calculator helps model cash flows under different scenarios: sales growth rates, payment terms, seasonal variations, capital expenditures, enabling strategic planning and working capital optimization.