Cash Flow Calculator

Net cash flow = Cash in − Cash out

Closing balance = Opening balance + Net cash flow

Runway = Closing balance ÷ Monthly burn

Only count money that moved. Unpaid invoices and unbilled work belong in receivables, not cash flow.

Opening ₹2,00,000, collections ₹4,50,000 and payments ₹5,20,000 leave a ₹70,000 burn and a ₹1,30,000 closing balance — under two months of runway.

Profit is recorded when an invoice is raised; cash arrives when the customer actually pays. In a business selling on 45- or 60-day credit while paying suppliers in 15 days and salaries on the first of the month, every rupee of growth widens that gap. This is why a growing, profitable business can miss payroll — the profit exists, it is simply sitting in receivables and stock.

The working capital cycle explains the size of the gap: days of stock held, plus days customers take to pay, minus days you take to pay suppliers. A cycle of 70 days means roughly ten weeks of operating cost must be funded before the money comes back. Shortening any of the three components frees cash faster than chasing extra sales.

Runway is the other number to watch. If the period burned cash, dividing the closing balance by the monthly burn tells you how many months remain at that rate. Anything under three months calls for action on collections or costs now rather than at the end of the quarter.