#766 · Business Tool

Agency Cash Flow Calculator

Use this agency cash flow calculator to estimate monthly cash flow, runway, accounts receivable pressure, and collection risk before cash gets tight.

Calculator

Cash flow and receivables
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How to use this calculator

Enter cash inflow, payroll, contractor payments, software, accounts receivable, cash reserve, and other outflows. The calculator estimates operating cash flow and receivables pressure.

What the result means

Strong agency cash flow requires positive net cash flow, enough reserve runway, and controlled accounts receivable. High unpaid invoices can create risk even when sales are strong.

Net Cash Flow = Cash Inflow - Cash Outflow. Runway = Cash Reserve ÷ Monthly Outflow. AR Ratio = Accounts Receivable ÷ Monthly Cash Inflow × 100.

Agencies with long payment terms should track receivables weekly, not only at month end.

Example calculation

If cash inflow is $95,000 and outflow is $77,500, net cash flow is $17,500. With $90,000 reserve, runway is about 1.16 months of outflow.

Tips for better results

  • Shorten payment terms where possible.
  • Invoice milestones instead of waiting until project completion.
  • Keep 3 to 6 months of runway if client concentration is high.

FAQ

How much runway should an agency have?

Many agencies aim for 3 to 6 months of operating expenses, especially when revenue is project-based or client concentration is high.

What is a healthy agency cash flow?

Healthy agency cash flow is positive after payroll, contractor payments, software, and overhead while maintaining adequate reserves.

How do unpaid invoices affect agency cash flow?

Unpaid invoices increase accounts receivable pressure and can force the agency to fund payroll before collecting revenue.

What accounts receivable ratio is too high?

An AR ratio above 30% of monthly inflow can indicate collection risk, depending on payment terms and client quality.

How can agencies improve cash flow?

Improve cash flow with upfront deposits, milestone billing, shorter payment terms, faster collections, and stronger retainer revenue.

Agency decision module

MetricMeaning
Main ResultPrimary agency KPI for this decision.
Health Score0 to 100 score based on margin, utilization, cash flow, or ROI.
BenchmarkAgency benchmark comparison for quick diagnosis.
RecommendationAutomatic action based on the result.

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