Startup Cash Flow Calculator
Track and forecast your startup's cash flow. See where money comes from, where it goes, and project your cash position over the next 12 months. Essential for financial planning and investor discussions.
Managing Startup Cash Flow
Cash flow is the lifeblood of any startup. You can be profitable on paper but still run out of cash. Understanding the difference between revenue, profit, and cash flow is critical for survival.
Cash Flow vs Profit
- Cash flow: Actual money in and out of your bank account
- Profit: Accounting concept (revenue minus expenses)
- Key difference: You can be profitable but cash-negative (waiting on receivables) or loss-making but cash-positive (collected deposits upfront)
Startups die from running out of cash, not from accounting losses. You can't pay salaries with future profits.
Cash Flow Components
| Inflows | Outflows |
|---|---|
| Product/service revenue | Salaries & payroll taxes |
| Investment funding | Rent & utilities |
| Loans / debt | Software subscriptions |
| Asset sales | Marketing & advertising |
| Tax refunds | Equipment & supplies |
| Grants | Professional services |
Improving Cash Flow
- Speed up collections: Shorter payment terms, early payment discounts, invoice immediately
- Slow down payments: Negotiate longer terms, use credit strategically, batch payments
- Annual prepay: Offer 2 months free for annual payment = 10 months cash upfront
- Deposits: Collect 50% upfront on projects
- Review subscriptions: Cancel unused tools, downgrade where possible
Frequently Asked Questions
Why is cash flow more important than profit for startups?
Startups die from running out of cash, not from accounting losses. You can't pay salaries with future profits. Cash is oxygen—monitor it weekly. A profitable company can still fail if customers pay too slowly.
How often should I review cash flow?
Weekly: Check bank balance and near-term obligations. Monthly: Full cash flow analysis and 3-month forecast. Quarterly: Revise annual projections and compare to actuals.
What's a healthy cash runway for a startup?
18+ months is comfortable. 12-18 months is healthy but start planning. Under 12 months means active fundraising. Under 6 months is critical—immediate action required.