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Miraç Özdemir
Cash Flow & Budgeting

Cash Budget Calculator (6-Month Cash Flow Plan and Funding Need)

Calculates month-end cash balances for 6 months, the lowest balance, the cash shortfall and the funding need against a minimum cash target from opening cash and monthly receipt and payment forecasts.

Version 1

Things to keep in mind:

  • Results are only as good as your forecasts; try optimistic, likely and pessimistic scenarios separately.
  • Intra-month shortfalls may not show in month-end balances; check heavy payment days separately.
  • Loan interest, exchange differences and tax payments are not included unless you add them to the forecasts.
  • This tool is for information only and is not financing advice.

Calculator

Start

TRY

Cash and bank balance at the start; negative for an overdraft.

TRY

Minimum cash to keep at the end of each month.

Month 1

TRY

Cash expected in during the month: sales collections, receivables, loan drawdowns, etc.

TRY

Cash expected out during the month: suppliers, wages, social security, tax, rent, loan instalments, etc.

Month 2

TRY

Cash expected to come in during month 2 (TRY): customer receipts, collection of receivables, loan drawdowns and so on. It is added to the previous month-end balance, and payments are then deducted, to get the month-end cash.

TRY

Cash expected to go out during month 2 (TRY): suppliers, salaries, social security, taxes, rent, loan instalments and so on. Enter it as a positive amount; the tool deducts it from the previous month-end balance.

Month 3

TRY

Cash expected to come in during month 3 (TRY): customer receipts, collection of receivables, loan drawdowns and so on. It is added to the previous month-end balance, and payments are then deducted, to get the month-end cash.

TRY

Cash expected to go out during month 3 (TRY): suppliers, salaries, social security, taxes, rent, loan instalments and so on. Enter it as a positive amount; the tool deducts it from the previous month-end balance.

Month 4

TRY

Cash expected to come in during month 4 (TRY): customer receipts, collection of receivables, loan drawdowns and so on. It is added to the previous month-end balance, and payments are then deducted, to get the month-end cash.

TRY

Cash expected to go out during month 4 (TRY): suppliers, salaries, social security, taxes, rent, loan instalments and so on. Enter it as a positive amount; the tool deducts it from the previous month-end balance.

Month 5

TRY

Cash expected to come in during month 5 (TRY): customer receipts, collection of receivables, loan drawdowns and so on. It is added to the previous month-end balance, and payments are then deducted, to get the month-end cash.

TRY

Cash expected to go out during month 5 (TRY): suppliers, salaries, social security, taxes, rent, loan instalments and so on. Enter it as a positive amount; the tool deducts it from the previous month-end balance.

Month 6

TRY

Cash expected to come in during month 6 (TRY): customer receipts, collection of receivables, loan drawdowns and so on. It is added to the previous month-end balance, and payments are then deducted, to get the month-end cash.

TRY

Cash expected to go out during month 6 (TRY): suppliers, salaries, social security, taxes, rent, loan instalments and so on. Enter it as a positive amount; the tool deducts it from the previous month-end balance.

After the first calculation, the result updates automatically when you change a value.

Result

Enter the values and press Calculate to see the result here.

About this tool

A cash budget plans month by month the cash that will come into and go out of a business over the coming months. Even a profitable business can run short of cash when collections and payments are out of step; a cash budget reveals the gap early so you can act with a credit line, renegotiated terms or deferred spending.

Formulas

  • Month-end cash = Previous month-end cash + Receipts in the month − Payments in the month (opening cash for month 1)
  • Lowest balance = the smallest of the 6 month-end balances
  • Funding need = max(0; Minimum cash target − Lowest balance)
  • Surplus over minimum = max(0; Cash at end of month 6 − Minimum cash target)

Example: a business with opening cash of 150,000 TRY and a minimum cash target of 50,000 TRY pays out more than it collects in months 1–3: the balance falls to 130,000, 60,000 and 0 TRY. In month 3 cash is 50,000 TRY below the minimum target, so that much extra funding (e.g. a credit line) is needed. As collections rise in months 4–6, the balance climbs to 290,000 TRY.

For receipts, consider the cash and credit parts of sales and the average collection period; for payments, supplier terms, wage, social security and tax payment dates and loan instalments.

How to use

  1. Enter the cash and bank total at the start (opening cash); enter a negative value if an overdraft is in use.
  2. Enter the minimum cash you want to keep.
  3. Enter expected receipts and payments for each month; empty months count as 0.
  4. Press Calculate and check the month with the lowest balance and the funding need.

Notes

Amounts are rounded to the cent (HALF_UP). If the lowest balance occurs in several months, the first is shown. The funding need is the largest additional cash required, at the month of the deepest shortfall; interest and repayment of any loan used must be added to the budget separately. Timing within the month (e.g. wages paid before collections) is not modelled; month-end balances are shown.

Sources

Frequently asked questions

4 questions

  1. Start from opening cash; for each month add expected receipts and subtract expected payments, and the month-end balance becomes the next month's opening balance. Months where the balance falls below the minimum cash target show the funding need.

Next step

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