Enter the total income and total expenses into the calculator to determine the cash flow forecast; this calculator can also evaluate the total income or total expenses given the cash flow forecast is known.

Cash Flow Forecast Formula

The following formula is used to calculate the cash flow forecast:

CF = (I - E)


  • CF is the cash flow forecast
  • I is the total income
  • E is the total expenses

To calculate the cash flow forecast, subtract the total expenses from the total income. The result will be the cash flow forecast.

What is a Cash Flow Forecast?

A Cash Flow Forecast is a financial document that projects the inflow and outflow of cash in a business over a specific period of time. It is a crucial tool for managing liquidity, enabling businesses to anticipate cash shortages or surpluses and plan accordingly. The forecast includes all expected receipts (inflows) from sales, loans, investments, etc., and all expected payments (outflows) such as salaries, rent, utilities, taxes, and other operational expenses. It also includes capital expenditures like purchasing equipment or property. By comparing the total expected inflows with the total expected outflows, businesses can predict their cash position at the end of the forecast period. This helps in making informed decisions about budgeting, investing, borrowing, and improving profitability.

How to Calculate Cash Flow Forecast?

The following steps outline how to calculate a Cash Flow Forecast:

  1. First, gather all the cash inflows for the given period.
  2. Next, gather all the cash outflows for the given period.
  3. Calculate the net cash flow by subtracting the total cash outflows from the total cash inflows.
  4. Based on the net cash flow, determine the opening cash balance for the period.
  5. Add the net cash flow to the opening cash balance to calculate the closing cash balance.
  6. Repeat the process for each period to create a cash flow forecast.

Example Problem:

Use the following variables as an example problem to test your knowledge.

Cash inflows for the month: $5000

Cash outflows for the month: $3000

Opening cash balance: $2000

Calculate the closing cash balance for the month.