A twelve-month forecast for a small business, drawn from four numbers. Move revenue, costs or starting cash and watch the cash line climb, flatten, or drop through zero.
It is a month-by-month track of how much cash a business holds. Starting from today's cash, it adds whatever profit each month leaves behind, so you can see the balance climb or fall over a year.
This simulator uses four inputs — monthly revenue, fixed cost, variable cost rate and starting cash — to draw that track and flag the month it would cross zero.
Cash, not profit, is what keeps the lights on. A business can be profitable on paper and still run out of money if its cushion is thin or its losses come early.
Two ideas matter most: profit per month sets the slope of the line, and starting cash sets where the line begins, so together they decide whether it ever reaches zero.
The revenue slider sets how much money the business takes in per month. Everything else is measured against this figure.
A set percentage of revenue goes straight back out as variable cost — materials, sales fees, delivery. A higher rate shrinks the profit margin before anything else is paid.
Rent, salaries and other fixed costs do not change with sales. They are taken out every month, so they bite hardest when revenue is low.
Revenue minus both costs leaves the monthly net profit, which is added to the cash balance. A positive profit lifts the line; a negative one drags it down.
The model steps through twelve months. If the balance stays above the dashed zero line it is safe; if it drops below, a red marker and warning note flag the month the cash runs out.
It is a month-by-month picture of how much cash a business holds. It starts from the cash you have now and adds the net profit earned each month.
This simple model treats them as linked: the net profit each month is added to the cash balance. A profitable month raises cash; a losing month lowers it.
Fixed costs stay the same whatever you sell, such as rent. Variable costs scale with revenue, and here are set as a percentage of monthly revenue.
It adds the monthly net profit to the starting cash again and again. The first month the running balance falls below zero is the month the cash runs out.
If the starting cash is small and the monthly profit is thin, or losses come early, the balance can dip below zero before enough profit builds up.
They show the net profit each month, the month the cash runs out or that it stays safe, and the cash balance left at month twelve.