Cash Flow Calculator

Why Cash Flow Matters

Operating Cash Flow (OCF) measures the actual cash a business generates from its core operations. Unlike net income, it accounts for non-cash expenses like depreciation and is a key indicator of liquidity, sustainability, and financial health.

How to Use This Calculator

• Revenue: Total sales or income from operations
• COGS: Direct costs of producing goods or services
• Operating Expenses: Rent, salaries, marketing, etc.
• Depreciation: Non-cash expense; added back to net income
• Interest: Cost of debt financing (affects taxable income)
• Tax Rate: Effective corporate tax rate (we extract numbers from any format)
• Enter values freely — we extract numbers from text, symbols, and units
• Click "Calculate Cash Flow" to see your operating cash flow

Formula Used

Where:

• Net Income = (Revenue - COGS - OpEx - Depreciation - Interest) × (1 - Tax Rate)
• Depreciation is added back because it’s a non-cash expense

Example: $500K revenue, $200K COGS, $100K OpEx, $10K depreciation, $5K interest, 25% tax
Net Income = ($185K EBT × 0.75) = $138,750 → OCF = $138,750 + $10,000 = $148,750

Interpreting Your Cash Flow

Industry Benchmarks

Tips to Improve Cash Flow

• ✅ Speed up receivables — invoice promptly, offer early payment discounts
• ✅ Delay payables — negotiate longer payment terms
• ✅ Reduce inventory — optimize stock levels
• ✅ Cut non-essential costs — review recurring expenses
• ✅ Lease instead of buy — preserve capital

Advanced Cash Flow Concepts

• Free Cash Flow (FCF): OCF - Capital Expenditures
• Cash Flow Forecasting: Project future inflows/outflows
• DCF Valuation: Use OCF to value a business
• Cash Conversion Cycle: Measures efficiency of cash flow management