Inflow Cash Floor Outflow
Use cash expected to hit the bank, not invoice revenue. This model provides planning signals only and does not replace accounting records.
Choose a starting pattern for common small-business cash pressure cases.
Use $, €, £, RM, or another short symbol used in your internal cash forecast.
Enter the bank cash you can use for operations now.
{{ currencyLabel }}
Use recent average collected cash or a conservative next-month forecast.
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Include invoices already issued and expected in the next one to three months.
{{ currencyLabel }}
{{ collection_delay_days }} days
Use 0-90 days based on customer payment timing.
Exclude payroll and variable outflows entered below.
{{ currencyLabel }}
Enter the normal monthly cash cost for staff and contractors.
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Use a recent average or a conservative next-month cash spend.
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{{ formatPercent(inflow_growth_pct, 1) }}
Use -20% to 30%; keep it conservative for survival planning.
{{ formatPercent(outflow_growth_pct, 1) }}
Use 0 for steady spend, or a positive value for inflation, hiring, or vendor increases.
Set the balance that triggers funding, expense cuts, or collection action.
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Use 13 weeks to 12 months for tactical cash control, or 18-36 months for planning.
Use the first month covered by your current bank balance.
{{ payable_delay_days }} days
Use 0-30 days for agreed payment timing changes.
Enter 0 if no funding is committed; scenario rows still estimate the gap.
{{ currencyLabel }}
Month 1 is the forecast start month.
{{ formatPercent(expense_cut_pct, 1) }}
Use a realistic cost-cut target for the next management review.
{{ formatPercent(revenue_upside_pct, 1) }}
Use 0 if there is no credible growth lever.
{{ stress_delay_days }} days
Models slow customer payments in the stress scenario.
Set the target period for the computed funding gap scenario.
Whole dollars are usually best for management review.
Metric Value Planning note Copy
{{ row.metric }} {{ row.value }} {{ row.note }}
Month Beginning cash Cash in Cash out Ending cash Signal Copy
{{ row.month }} {{ row.beginning }} {{ row.cashIn }} {{ row.cashOut }} {{ row.ending }} {{ row.signal }}
Scenario Runway Zero date Ending cash Operating move Copy
{{ row.scenario }} {{ row.runway }} {{ row.zeroDate }} {{ row.endingCash }} {{ row.move }}
Trigger Status Action Owner cue Copy
{{ row.trigger }} {{ row.status }} {{ row.action }} {{ row.ownerCue }} 

                

            

        

    

                

                

                    

                        

                            Tags: Finance, Small Business
                        

                        

                            
                            
                        

                    

                

            

        

    


                    
        

        

        

            

            
        

        


                    

                

                

                    

                                                    

                                
                            

                                                    

                                
                            

                                                    

                                
                            

                                                    

                                
                            

                                            

                

            

        
                                                                                                                                                                                                                                                        
        

        

            
            

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Cash runway measures how long a business can keep operating before the projected cash balance reaches a danger point. It is different from profit. A company can show revenue, booked invoices, or even accounting profit and still run short when customer collections arrive after payroll, rent, inventory, tax, or debt payments.

  
A useful runway forecast separates cash already in the bank from cash expected to arrive, cash expected to leave, and cash the owner wants to keep untouched as a safety floor. That safety floor matters because waiting until the balance reaches zero usually leaves too little time to negotiate supplier terms, collect receivables, reduce spend, or arrange funding.

  

    Cash inflows, balance, safety floor, and outflows shown as a cash runway flow.
  

  
The hardest part is timing. Receivables that are due soon can still miss the month when bills must be paid. Payroll and rent are often more predictable than sales, so a forecast should be conservative when customer payment dates or seasonal demand are uncertain.

  
Runway is a planning signal, not a prediction of business survival. It gives owners a calendar for action: collect earlier, spend later, cut expenses, raise prices, secure funding, or pause commitments before the reserve floor is breached.






  
How to Use This Tool:

  
Use the calculator as a monthly cash forecast, then compare the base case with stress and recovery scenarios.

  
    
    
  1. Choose a Business profile or start with Custom cash plan. Profiles load sample cash, collection, outflow, and scenario assumptions for common business shapes.
    2. 
    
  2. Set Currency symbol, Current cash, Monthly cash inflow, Receivables due, and Collection delay. The receivable amount is modeled as one-time cash based on the selected delay.
    3. 
    
  3. Enter recurring outflows in Monthly fixed outflow, Monthly payroll outflow, and Monthly variable outflow. The snapshot combines them as monthly cash out.
    4. 
    
  4. Adjust Inflow growth and Outflow growth for the monthly trend, then set Safety cash floor, Forecast horizon, and Forecast start month.
    5. 
    
  5. Open Advanced for payable timing, planned funding, funding month, expense-cut scenario, inflow-upside scenario, receivable-stress delay, target floor window, and money precision.
    6. 
    
  6. If the summary or tables stop making sense, check the validation cues first. Cash, inflow, receivables, outflows, and reserve floor cannot be negative, and the forecast horizon must stay between 1 and 36 months.
    7. 
    
  7. Review Runway Snapshot, Monthly Projection, Cash Balance Path, Runway Scenario Spread, Scenario Matrix, and Action Thresholds before acting on the headline month count.
    8. 
  






  
Interpreting Results:

  
Cash runway is the modeled time until cash reaches zero. Safety floor breach is often more important because it marks the point where the business loses its chosen buffer.

  
Bridge funding need estimates the amount needed to stay above the safety floor through the selected target window. A zero bridge need does not remove business risk; it means the model stays above that floor for the chosen window under the current assumptions.

  
Use Scenario Matrix and Action Thresholds to challenge false confidence. A base forecast with no zero-cash date can still become tight when receivables slip or when the reserve floor is breached early.






  
Technical Details:

  
The forecast is a month-by-month cash balance model. Each row starts with the previous ending cash, adds recurring inflow, adds any one-time receivable or funding event, subtracts modeled cash outflow, and records the ending balance.

  
Growth assumptions compound by month. A positive inflow growth rate raises recurring collections over time; a positive outflow growth rate raises the operating cost base. Receivable delay chooses the month when the one-time receivable is added, so slower collection can create short-term pressure even when the total forecast cash is unchanged.

  
Payable timing is modeled as a deferral share from the selected delay days. Part of the scheduled outflow is shifted from the current month into the next month, which can improve the early balance but does not remove the obligation.

  
Formula Core:

  
The monthly projection uses a running balance and checks for crossings between beginning and ending balances.

  

    
      
        
          It
          =
          Min×(1+gin)t+Rt+Ft
        
        
          Osched,t
          =
          Obase×m×(1+gout)t
        
        
          Ocash,t
          =
          Osched,t×(1-d)+Osched,t-1×d
        
        
          Ct+1
          =
          Ct+It-Ocash,t
        
        
          Gapfund
          =
          max(0,Cfloor-Cmin target)
        
      
    
  

  

    

      
      
        

          Symbol
          Meaning
          Input or result
        

      
      
        
C_tCash balance at the start of month tStarts with Current cash

        
M_inRecurring monthly collected cashMonthly cash inflow

        
O_baseFixed, payroll, and variable outflows combinedMonthly cash out

        
R_tOne-time receivable in its modeled collection monthReceivables due and Collection delay

        
F_tOne-time planned funding in the selected monthPlanned funding and Funding month

        
mScenario outflow multiplierBase, expense cut, or other scenario

        
dPayable deferral share from delay days divided by 30Payable delay days, capped from 0 to 1

      
    

  

  
When a balance crosses zero or the safety floor inside a month, the crossing date is interpolated between the beginning and ending balance. The crossing fraction is the distance from the beginning balance down to the threshold divided by the total drop during that month.

  

    

      
      
        

          Risk label
          Boundary
          Planning meaning
        

      
      
        
Cash positiveRecurring net cash flow is non-negative and zero is not reachedStill check reserve floor and receivable timing.

        
Critical runwayCash runway <= 3 monthsShort-term action is urgent.

        
Tight runwayCash runway <= 6 monthsFunding, collections, and cost decisions should not wait.

        
Review soonCash runway <= 12 monthsMonitor assumptions and prepare options.

        
Floor watchSafety floor is breached within 6 months while zero is not reachedThe reserve policy is at risk before cash runs out.

      
    

  

  
For example, opening with $85,000, collecting $42,000 per month, and spending $45,100 per month creates a recurring burn of $3,100 before one-time receivables, funding, and growth. If the balance crosses a $30,000 floor in month 12, the runway to zero may still look longer, but the floor breach is the earlier management trigger.






  
Limitations:

  
This is a planning model, not financial advice. It does not replace bookkeeping, tax planning, lender covenants, payroll rules, invoice aging review, or a real cash close.

  
    
    
  • Booked revenue should not be entered as cash inflow unless collection timing is realistic.
    • 
    
  • Payable delay should reflect negotiated timing, not missed critical bills.
    • 
    
  • Rerun the forecast after each large invoice, payroll, loan payment, or funding decision.
    • 
  






  
Worked Examples:

  

    
Main-street service business

    
With Current cash at $85,000, Monthly cash inflow at $42,000, and combined outflows of $45,100, the Runway Snapshot shows a monthly burn before receivables. The Cash Balance Path shows whether the $18,000 receivable arrives soon enough to protect the safety floor.

  

  

    
Slow receivable stress

    
An agency with a large Receivables due value may look healthy in the base forecast. Raising Receivable stress by 45 days can move the Safety floor breach earlier, even though the invoice is still expected later in the horizon.

  

  

    
Negative value correction

    
If Monthly variable outflow is accidentally entered below zero, the result flags that cash outflow fields cannot be negative. Correct the value before trusting Bridge funding need or the scenario charts.

  






  
FAQ:

  

    Why can cash positive still show a floor warning?
    
A positive recurring month does not erase a low starting balance or early timing problem. Safety floor breach checks the projected balance against the entered floor throughout the forecast.

  

  

    Should receivables be entered as revenue?
    
No. Use Receivables due for one-time cash expected near the start of the forecast, and use Collection delay to model when that cash becomes available.

  

  

    What does bridge funding need mean?
    
It is the modeled amount needed to keep ending cash above the safety floor through the selected target months. It is not a lender quote or a complete capital plan.

  

  

    Why does changing the currency not convert values?
    
Currency symbol changes display labels only. The calculator does not apply exchange rates, so all entered cash values should already use the same currency.

  






  
References: