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Forecast future cash flow and understand where your business may be heading. Estimate MRR and ARR growth based on your current performance and expected growth assumptions.
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Current Runway
30 MonthsRunway With Growth
0 MonthsNet Cash Flow / Month
-$10,000Cash-Out Month
NeverCash Flow Projection
What is cash flow forecasting?
Cash flow forecasting estimates how cash balances change over time by considering incoming and outgoing money. It helps you predict when you might run out of cash, plan for growth investments, and avoid surprises that could threaten your business.
Why cash flow forecasting matters?
Helps avoid cash shortages
Supports hiring plans
Improves budgeting
Helps prepare for fundraising
How to improve cash flow?
Reduce unnecessary expenses
Improve collections
Increase pricing
Delay non-essential spending
What your forecast means?
| Metric | Healthy Range |
|---|---|
| Cash remains positive | Healthy |
| Cash becomes negative in 6–12 months | Requires planning |
| Cash becomes negative in less than 6 months | High risk |
Example Scenario
Starting Cash:
$300,000Revenue:
$35,000/monthExpenses:
$45,000/monthGrowth Rate:
5%Forecast Period:
12 monthsEstimated runway:
14 monthsFrequently Asked Questions
What is cash flow forecasting?
+Cash flow forecasting estimates the amount of cash expected to enter and leave a business over a future period. It helps companies anticipate potential cash shortages, manage expenses, and ensure sufficient liquidity to support ongoing operations.
Why is cash flow forecasting important?
+Many profitable businesses fail because they run out of cash. Cash flow forecasting provides visibility into future cash positions, enabling business owners to make informed decisions about spending, hiring, inventory purchases, and financing requirements.
What is cash runway?
+Cash runway represents the amount of time a business can continue operating before exhausting its available cash reserves. Startups often calculate runway by dividing available cash by their monthly net cash burn. Monitoring runway helps founders plan fundraising and manage growth responsibly.
How far into the future should businesses forecast cash flow?
+Most businesses maintain a rolling forecast covering at least 3 to 12 months. Startups and rapidly growing companies often extend forecasts to 18 or 24 months to support fundraising and strategic planning.
What is the difference between profit and cash flow?
+Profit measures revenue minus expenses, while cash flow measures the actual movement of money in and out of a business. A company can be profitable on paper but still experience cash flow problems if customers pay late or expenses occur before revenue is collected.
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