Cash Flow Calculator
Project monthly cash flow with income and expenses. See closing balance and lowest point.
Last updated: April 2026 · Source: GOV.UK – Set Up a Business
Closing Balance
£17,000.00
Lowest Balance
£5,000.00
Month 0
Total Income
£96,000.00
Total Expenses
£84,000.00
| Month | In | Out | Net | Balance |
|---|---|---|---|---|
| Opening | £5,000.00 | |||
| 1 | £8,000.00 | £7,000.00 | £1,000.00 | £6,000.00 |
| 2 | £8,000.00 | £7,000.00 | £1,000.00 | £7,000.00 |
| 3 | £8,000.00 | £7,000.00 | £1,000.00 | £8,000.00 |
| 4 | £8,000.00 | £7,000.00 | £1,000.00 | £9,000.00 |
| 5 | £8,000.00 | £7,000.00 | £1,000.00 | £10,000.00 |
| 6 | £8,000.00 | £7,000.00 | £1,000.00 | £11,000.00 |
| 7 | £8,000.00 | £7,000.00 | £1,000.00 | £12,000.00 |
| 8 | £8,000.00 | £7,000.00 | £1,000.00 | £13,000.00 |
| 9 | £8,000.00 | £7,000.00 | £1,000.00 | £14,000.00 |
| 10 | £8,000.00 | £7,000.00 | £1,000.00 | £15,000.00 |
| 11 | £8,000.00 | £7,000.00 | £1,000.00 | £16,000.00 |
| 12 | £8,000.00 | £7,000.00 | £1,000.00 | £17,000.00 |
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Cash flow forecasting tracks the actual movement of money in and out of your business on a weekly or monthly basis. The formula is straightforward: Opening balance + Total cash inflows − Total cash outflows = Closing balance. The closing balance of one period becomes the opening balance of the next. Unlike profit, cash flow accounts for the timing of payments—you may invoice £10,000 in March but not receive payment until May.
Cash inflows include customer payments, loan drawdowns, tax refunds, grants, asset sales, and any other money physically entering your bank account. Cash outflows cover supplier payments, wages, rent, utilities, loan repayments, tax payments (VAT, PAYE, Corporation Tax), equipment purchases, and dividend distributions. Categorising each flow allows you to identify which areas consume the most cash.
A negative closing balance signals a shortfall that must be covered by an overdraft, loan, or deferring payments. Projecting 12 months ahead lets you spot potential crises before they happen. Key metrics include the cash burn rate (average monthly outflows minus inflows when negative) and the runway (current balance divided by monthly burn rate), showing how many months the business can survive without additional income.
Monthly cash flow for a freelance design studio
- Opening balance on 1 April: £4,200.
- April cash inflows: £7,500 (client payments received).
- April cash outflows: rent £800 + software £150 + subcontractor £2,000 + personal draw £2,500 + VAT payment £1,400 = £6,850.
- Closing balance: £4,200 + £7,500 − £6,850 = £4,850.
- Net positive cash flow of £650 for the month; balance carried forward to May.
Source: GOV.UK – Set Up a Business
Frequently Asked Questions
- What does the Cash Flow Calculator do?
- Project monthly cash flow with income and expenses. See closing balance and lowest point. All calculations are performed in your browser using official UK rates and thresholds.
- Is this suitable for my business?
- This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.
- Does this use 2025/26 tax rates?
- Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.