Enter the cash flow from operations, cash flow from investing, and cash flow from financing. The calculator will determine the net cash flow.

Net Cash Flow Formula

The following equation is used to calculate the net cash flow of a business.

NCF = CO + CI + CF
  • Where NCF is the net cash flow
  • CO is the cash from operations
  • CI is the cash from investments
  • CF is the cash from financing

Net Cash Flow Definition

Net Cash Flow refers to the overall cash movement into or out of business during a specific period. It is a crucial financial metric that indicates the net change in a company’s cash position resulting from its operational, investing, and financing activities.

Net Cash Flow measures the cash generated or used by a business, providing valuable insights into its financial health and sustainability.

It reflects the company’s ability to generate sufficient cash to cover operational expenses, invest in growth opportunities, repay debts, or distribute dividends to shareholders.

By analyzing Net Cash Flow, stakeholders can assess the effectiveness of a company’s cash management and its capacity to meet its financial obligations.

A positive net cash flow suggests that a business generates more cash than it is spending, indicating a healthy financial state and potential for growth.

A negative net cash flow indicates that a company spends more cash than it generates. This situation may raise concerns about the business’s ability to sustain its current operations or meet its financial obligations.

Net Cash Flow Example

How to calculate a net cash flow?

  1. First, determine the total cash from operations.

    Calculate the cash generated from operations.

  2. Next, determine the cash from investments.

    Calculate the cash generated from investments.

  3. Next, determine the cash from financing.

    Calculate the cash generated from financing.

  4. Finally, calculate the net cash flow.

    Calculate the net cash flow using the formula above.


What is net cash flow?

Net cash flow is the total cash flow generated from all sources including operations, investments, and financing.

net cash flow calculator
net cash flow formula