Enter the total cash inflows and cash outflows into the calculator to determine the net increase in cash for a business or project.
Net Increase In Cash Formula
The following formula is used to calculate the net increase in cash.
NIC = CI - CO
Variables:
- NIC is the net increase in cash ($)
- CI is the total cash inflows ($)
- CO is the total cash outflows ($)
To calculate the net increase in cash, subtract the total cash outflows from the total cash inflows.
What is Net Increase In Cash?
Net increase in cash is a financial metric that represents the change in a company’s or project’s cash position over a period of time. It is calculated by taking the difference between the cash inflows and cash outflows. A positive net increase indicates that the cash inflows have exceeded the cash outflows, which can be a sign of financial health. Conversely, a negative net increase indicates that the cash outflows have exceeded the inflows, which may require attention to cash management strategies.
How to Calculate Net Increase In Cash?
The following steps outline how to calculate the Net Increase In Cash.
- First, determine the total cash inflows (CI) during the period.
- Next, determine the total cash outflows (CO) during the same period.
- Use the formula from above = NIC = CI – CO.
- Finally, calculate the Net Increase In Cash (NIC).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Total cash inflows (CI) = $50,000
Total cash outflows (CO) = $30,000
