Cash Flow Calculator
Calculate operating, investing, and financing cash flows to assess business liquidity.
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How to use this calculator
Operating CF adds back non-cash charges (depreciation) and working capital changes to net income. Investing CF nets capital expenditures against asset sale proceeds. Financing CF nets new capital raised against repayments.
- 1
Enter your net income, depreciation, and any change in working capital for operating cash flow.
- 2
Add capital expenditures and asset sale proceeds for investing cash flow, and debt movements for financing cash flow.
- 3
Read the net cash flow, free cash flow, and each section of the cash flow statement.
Frequently asked questions
What formula does the tool use for net cash flow?
This tool uses operating cash flow = net income + depreciation & amortization + change in working capital; investing = asset sale proceeds − capex; financing = new debt or equity − repayments and dividends. Net cash flow is the sum of the three. The default inputs give 27,000.00, −8,000.00 and −2,000.00, for a net of 17,000.00.
How should I enter the change in working capital?
Type it as its effect on cash. The value is added straight to operating cash flow, so a negative number means working capital absorbed cash, for example receivables or inventory grew. The default is −3,000 and a positive entry increases cash. The field is not sign-flipped for you.
How is free cash flow defined here?
Free cash flow is operating cash flow − capex. It ignores asset sale proceeds and all financing items. In the default case it is 27,000 − 8,000 = 19,000.00, which differs from net cash flow of 17,000.00 because net cash flow also includes the 2,000 of repayments.
Can net cash flow be positive when free cash flow is negative?
Yes. With a −10,000 net income, 20,000 depreciation, −15,000 working capital, 30,000 capex, 5,000 asset sales, 50,000 raised and 10,000 repaid, net cash flow is +10,000.00 while free cash flow is −35,000.00. The 50,000 of new money covers the gap, which shows why the status line alone does not describe how healthy the business is.
What does the status line mean?
It reads positive when net cash flow is above zero, negative when below zero, and says exactly zero when the three sections cancel out. It describes one period only and says nothing about the opening cash balance or whether the business can meet its bills.
Which signs should capex and repayments have?
Enter capex, repayments and dividends as positive amounts because the tool subtracts them. Entering a negative capex would add cash and make investing flow look better, so check the sign if a result seems too good. Proceeds, debt issued and net income are entered as they happen, with a loss as a negative number.
What does it leave out?
Only depreciation and amortization are added back. Other non-cash items, such as share-based pay or deferred tax, and interest or tax timing are not separate fields. The tool also does not take an opening or closing cash balance, so it measures the period’s change in cash and not the balance itself.
Cash flow calculator: operating, investing and financing cash flow
Three sections, one total
Cash flow is split into the cash from running the business, the cash spent on or received from long-term assets, and the cash that moves between the business and its lenders or owners. The calculator takes seven inputs, builds each section and adds them. It also gives free cash flow, which looks at operations after capex only.
| Section | Formula | Inputs used |
|---|---|---|
| Operating cash flow | Net income + depreciation + working capital change | Net income, D&A, working capital |
| Investing cash flow | Asset sale proceeds − capex | Asset sales, capex |
| Financing cash flow | Debt or equity raised − repayments and dividends | Raised, repaid |
| Net cash flow | Operating + investing + financing | All three sections |
| Free cash flow | Operating − capex | Operating result, capex |
Profit and cash can disagree
In the default case a net income of 25,000 turns into 27,000 of operating cash flow, because 5,000 of depreciation is added back and 3,000 is tied up in working capital. Cash arrives later than profit when customers pay late or stock builds up. That is why a profitable period can still leave less cash than expected.
Two runs worth comparing
The table sets the default inputs beside a case with a loss, large capex and new financing. The output is the calculator’s own, and the second row shows a positive total propped up by a raise.
| Case | Operating | Investing | Financing | Net | Free cash flow |
|---|---|---|---|---|---|
| Default inputs | 27,000.00 | −8,000.00 | −2,000.00 | 17,000.00 | 19,000.00 |
| Loss, 30,000 capex, 50,000 raised | −5,000.00 | −25,000.00 | 40,000.00 | 10,000.00 | −35,000.00 |
Reading free cash flow
Free cash flow strips out financing, so it shows what operations generated after paying for assets. A positive net figure with negative free cash flow, as in the second row, means the period was paid for by outside money or asset sales. A business can live on that for a while, but the reading is different from a period where operations pay for themselves. Compare the operating line with the financing line first: when financing is larger than operating, the period leaned on outside money.
Using it for planning
Fill the fields from your income statement and from the changes in your balance sheet, taking care that every field covers the same period, then adjust one input at a time. Try a larger capex or a slower collection cycle and watch operating and free cash flow respond. For a full statement with opening balances, interest and tax detail, use your accounting software. Keep the period consistent across the seven fields, so that net income, capex and repayments all describe the same month, quarter or year.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →