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Cash flow

Cash-Flow Formulas

Measure cash generation, timing and investment returns with the right cash-flow structure.

What you can calculate in this section

Measure cash generation, timing and investment returns with the right cash-flow structure. Start with the result you need, then confirm that every input comes from the same period and uses the definition shown on the selected page.

A calculator returns a mathematical result. The worked example and limitations explain whether that result belongs in the decision you are making.

10 guides and calculators

Each page below gives the direct definition first, then the equation or method, inputs, sample calculation, common mistakes and related formulas.

glossary

Free Cash Flow

free cash flow explained with the formula, inputs, example and limitations.

Open Free Cash Flow →
glossary

Net Cash Flow

net cash flow explained with the formula, inputs, example and limitations.

Open Net Cash Flow →

How to choose the right formula

  1. Name the decision.
    Decide whether you need a value, rate, margin, return, balance or comparison.
  2. Match the timing.
    Use annual figures with annual figures and distinguish a point-in-time balance from a period flow.
  3. Check the definition.
    Confirm what each numerator, denominator, cash flow or cost includes.
  4. Run an example.
    Reproduce the sample result before entering your own figures.
  5. Test another case.
    Change one assumption at a time and record what drives the answer.

Frequently asked questions

What is cash-flow formulas?

Measure cash generation, timing and investment returns with the right cash-flow structure.

How should I use cash-flow formulas?

Use the formula only after matching every input to the same period, unit and definition. Then compare the result with a worked example and the decision you are trying to make.

What is the most common mistake with cash-flow formulas?

The most common mistake is choosing a familiar formula before defining the decision, period, units and available inputs.

Can I calculate cash-flow formulas in a spreadsheet?

Yes. Reproduce the displayed equation with separate cells for each input, keep percentages as decimals, and test the spreadsheet against the worked example before replacing the sample figures.

Sources and methodology

The section’s financial context is checked against Calculate NPV and IRR in Excel. Each leaf page names the source used for its specific formula or reporting relationship.

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