What are operating, investing, and financing activities?

Operating activities: day-to-day business cash flows — sales receipts, payments to suppliers, salaries, rent, GST paid. Investing activities: buying/selling assets — equipment purchase, property, investment returns. Financing activities: loans received/repaid, capital infused, EMI paid, dividends. Separating these three helps diagnose where cash is being generated or consumed.

How do I calculate business runway?

Runway = Closing Cash Balance ÷ Monthly Cash Burn Rate. If you have ₹6,00,000 in the bank and burn ₹1,00,000/month, your runway is 6 months. This is critical for startups raising funds — investors want to see at least 12–18 months runway. This calculator shows your runway automatically when cash flow is negative.

What is a good operating cash flow ratio?

Operating Cash Flow Ratio = Operating Cash Flow ÷ Current Liabilities. A ratio above 1 means operations generate enough cash to cover short-term obligations — a sign of financial health. Below 0.5 is a warning sign. Most banks and investors look at this ratio when assessing creditworthiness and business viability.

Should GST paid be included in cash flow?

Yes. GST paid to the government (net of ITC) is a cash outflow under operating activities. Similarly, GST received from customers is an inflow. Since GST is a pass-through, many businesses track it separately. Always use net GST payments (after ITC) in your cash flow analysis for accurate results.

Cash Flow Calculator India — Free Online Tool

Q: What is cash flow in a business?

Cash flow is the net movement of money into and out of a business over a period. Positive cash flow means more money coming in than going out — the business can pay bills, invest, and grow. Negative cash flow means the business is spending more than it earns. Profitable businesses can still fail from poor cash flow management.

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Monthly Cash Flow Calculator

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Operating Activities — Inflows

Sales Receipts (₹)

Advance Received (₹)

Other Operating Income (₹)

Operating Activities — Outflows

Purchases (₹)

Salaries (₹)

Rent (₹)

Utilities (₹)

Marketing (₹)

GST Paid (Net of ITC) (₹)

Other Operating Expenses (₹)

Investing Activities — Inflows

Asset Sale (₹)

Investment Returns (₹)

Investing Activities — Outflows

Equipment Purchase (₹)

Property Purchase (₹)

Financing Activities — Inflows

Loan Received (₹)

Capital Infused (₹)

Financing Activities — Outflows

EMI Paid (₹)

Interest Paid (₹)

Dividend Paid (₹)

Cash Position

Opening Cash Balance (₹)

Net Cash Change

₹0

Closing Balance

₹0

Operating Cash Flow₹0

Investing Cash Flow₹0

Financing Cash Flow₹0

Opening Cash Balance—

Net Change in Cash—

Closing Cash Balance—

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Cash Flow Formulas

        Net Cash Change = Operating + Investing + Financing

        Closing Balance = Opening Balance + Net Cash Change

        Runway (months) = Closing Balance ÷ Monthly Burn Rate

        Operating CF Ratio = Operating CF ÷ Current Liabilities

Cash Flow Health Signals

Signal	Healthy	Warning
Operating CF	Positive	Consistently negative
Runway	>12 months	<3 months
Cash Burn	<20% revenue	>50% revenue
Working Capital	Positive + growing	Negative or shrinking

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"The runway estimate was eye-opening. I realized I had only 4 months of cash left and immediately started cutting costs. Raised a round 2 months later."

Priya Mehta — SaaS startup founder, Bangalore

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"I use this every month to present to my investors. Breaking down operating vs investing vs financing flows gives a professional picture of our business."

Karan Singh — E-commerce founder, Delhi

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"Caught a massive discrepancy between my sales vs receipts — customers were paying late. This prompted me to tighten payment terms."

Deepa Nair — Services business, Chennai

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Frequently Asked Questions

What is cash flow in a business?+

Cash flow is the net movement of money in and out of a business. Positive = more in than out. Negative = spending more than earning. A profitable business can still fail from poor cash flow — it's one of the top reasons Indian SMEs close. Monitor monthly.

What are the three types of cash flow?+

Operating: day-to-day sales, purchases, salaries, GST. Investing: buying/selling assets, equipment. Financing: loans, capital, EMI, dividends. Healthy businesses have positive operating cash flow — investing and financing can be negative when growing.

How do I calculate my business runway?+

Runway = Closing Balance ÷ Monthly Burn Rate. If you have ₹6L cash and burn ₹1L/month, runway is 6 months. Investors and banks want 12–18 months runway. This calculator shows runway automatically when cash flow is negative.

Should GST paid be in my cash flow?+

Yes — GST paid to the government (net of ITC) is a cash outflow under operating activities. Use net GST (output GST collected minus ITC claimed). This gives accurate operating cash flow. Don't include gross GST or you'll overstate outflows.

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Cash Flow Formulas

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