Cash Flow Calculator
:root {
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–success-green: #28a745;
–light-background: #f8f9fa;
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font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
background-color: var(–light-background);
color: var(–dark-text);
margin: 0;
padding: 20px;
display: flex;
justify-content: center;
align-items: flex-start;
min-height: 100vh;
}
.loan-calc-container {
background-color: #ffffff;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1);
padding: 30px;
max-width: 700px;
width: 100%;
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input[type="number"] {
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border-radius: 5px;
font-size: 1rem;
transition: border-color 0.3s ease;
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input[type="number"]:focus {
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button {
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.result-section h3 {
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.result-value {
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.cash-flow-status {
font-size: 1.2rem;
margin-top: 10px;
font-weight: 600;
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.status-positive {
color: var(–success-green);
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.status-negative {
color: #dc3545; /* Red for negative */
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h1 {
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button {
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Understanding and Calculating Cash Flow
Cash flow is a fundamental concept in finance, representing the net amount of cash and cash-equivalents being transferred into and out of a business or an individual's personal finances. Positive cash flow means more money is coming in than going out, indicating financial health. Negative cash flow means more money is going out than coming in, which can be unsustainable if not managed carefully.
Calculating cash flow is crucial for making informed financial decisions, budgeting, forecasting, and assessing the liquidity of a business. It helps stakeholders understand a company's ability to meet its short-term obligations, invest in growth, and return value to shareholders.
How to Calculate Cash Flow
The basic formula for calculating cash flow is straightforward:
Net Cash Flow = Total Cash Inflows – Total Cash Outflows
- Cash Inflows: This includes all the money that comes into your business or personal accounts during a specific period. Common examples include:
- Revenue from sales of goods or services
- Investment income
- Interest received
- Loan proceeds
- Asset sales
- Dividends received
- Cash Outflows: This encompasses all the money that leaves your business or personal accounts during the same period. Common examples include:
- Operating expenses (rent, utilities, salaries)
- Cost of goods sold
- Marketing and advertising costs
- Loan repayments
- Taxes paid
- Capital expenditures (purchases of assets)
- Inventory purchases
The result of this calculation is your Net Cash Flow for the period.
Interpreting Your Cash Flow Results
-
Positive Net Cash Flow: Indicates that your inflows exceed your outflows. This is generally a good sign, suggesting your finances are healthy and you have surplus cash that can be used for reinvestment, debt reduction, or savings.
-
Negative Net Cash Flow: Signifies that your outflows are greater than your inflows. This situation requires immediate attention. It may necessitate cutting expenses, increasing revenue, or securing external financing to cover the deficit. Persistent negative cash flow can lead to insolvency.
-
Zero Net Cash Flow: Means your inflows exactly match your outflows. While not inherently bad, it leaves no room for unexpected expenses or growth opportunities without impacting existing operations.
Use Cases for Cash Flow Calculation
- Business Operations: To monitor the day-to-day financial health of a company.
- Financial Planning: For budgeting, forecasting future needs, and making strategic decisions.
- Investment Analysis: To evaluate the profitability and sustainability of potential investments.
- Personal Finance: To manage household budgets, track spending, and plan for financial goals.
- Loan Applications: Lenders often review cash flow statements to assess a borrower's ability to repay debt.
Regularly calculating and analyzing your cash flow is a vital practice for achieving financial stability and growth.
function calculateCashFlow() {
var cashInflowsInput = document.getElementById("cashInflows");
var cashOutflowsInput = document.getElementById("cashOutflows");
var resultSection = document.getElementById("resultSection");
var netCashFlowDisplay = document.getElementById("netCashFlow");
var cashFlowStatusDisplay = document.getElementById("cashFlowStatus");
var cashInflows = parseFloat(cashInflowsInput.value);
var cashOutflows = parseFloat(cashOutflowsInput.value);
if (isNaN(cashInflows) || isNaN(cashOutflows)) {
alert("Please enter valid numbers for cash inflows and outflows.");
return;
}
var netCashFlow = cashInflows – cashOutflows;
netCashFlowDisplay.textContent = '$' + netCashFlow.toFixed(2);
var statusText = "";
var statusClass = "";
if (netCashFlow > 0) {
statusText = "Positive Cash Flow (Healthy)";
statusClass = "status-positive";
} else if (netCashFlow < 0) {
statusText = "Negative Cash Flow (Potential Concern)";
statusClass = "status-negative";
} else {
statusText = "Neutral Cash Flow (Break-even)";
statusClass = "status-neutral";
}
cashFlowStatusDisplay.textContent = statusText;
cashFlowStatusDisplay.className = "cash-flow-status " + statusClass; // Update class for styling
resultSection.style.display = "block";
}