Cash Flow Diagram Generator
Plot timed inflows and outflows, calculate NPV and break-even, and download a clear cash-flow timeline.
Diagram Inputs
Enter payments as negative amounts and receipts as positive amounts. Period 0 means now.
Generated Cash Flow Diagram
Arrows above the line are inflows; arrows below it are outflows.
Discount Rate Scenarios
Each scenario keeps the cash-flow amounts and timing unchanged, then moves only the annual rate.
| Annual Rate | NPV | Change vs Base |
|---|
Period-by-Period Breakdown
| Period | Cash Flow | Cumulative | Present Value |
|---|
Present value = cash flow ÷ (1 + periodic rate)period.
Worked Example: £10,000 Out, £12,000 In
An outflow of £10,000 now followed by £3,000, £4,000 and £5,000 in years 1–3 gives £2,000 net cash flow. At 5%, those receipts have present values of £2,857.14, £3,628.12 and £4,319.19, so NPV is £804.45 and simple break-even arrives in year 3.
How to Read the Timeline
Period 0 means now, so its discount factor is exactly 1. Positive amounts point above the axis and negative amounts point below it. Arrow height is relative: a £10,000 flow is drawn taller than a £3,000 flow, while the labels preserve the exact values.
The undiscounted net adds the amounts directly. NPV discounts period t by (1 + r)t, so £5,000 in year 3 is worth £4,319.19 at 5% in period-0 terms.
Discounting Years and Months
For yearly diagrams, the entered annual rate is the period rate. For monthly diagrams, a 12% annual effective rate becomes about 0.95% per month using (1.12)1/12 − 1; simply dividing 12% by 12 gives a different result.
HM Treasury’s Green Book uses discounting to compare values at different times. Its 3.5% real central rate applies to years 0–30 in public appraisal; this tool does not treat 3.5% as a recommendation for private projects.
Break-even and Rate Sensitivity
Simple break-even is the first period where cumulative cash flow returns to at least £0 after being negative. It ignores discounting, so a series can break even nominally while its NPV remains below £0.
The scenario table changes the annual rate by 2 percentage points in either direction. In the worked example, NPV is £1,258.71 at 3%, £804.45 at 5% and £378.98 at 7%; every cash-flow amount stays fixed.
A Diagram Is Not a Cash-flow Statement
This generator plots 4–6 net values. A formal statement serves a different purpose: IFRS IAS 7 groups reported cash flows into 3 classes—operating, investing and financing—and reconciles changes in cash and cash equivalents.
Use accounting software or a qualified accountant for compliant reporting. For a 3-, 6- or 12-month operating model, use the Cash Flow Forecast Generator.
Method and Limits
The method assumes each amount occurs exactly at its numbered period and the entered annual percentage is an effective rate. Period 0 is not discounted; period 3 is discounted for exactly 3 periods.
The cash-flow arrow length is only a relative visual cue. Exact amounts, cumulative totals and present values remain in the labels and breakdown, so a small arrow must not be read as a precise scale measurement.
- No intra-period dates. Day 1 and day 30 of the same month occupy one point.
- No added assumptions. Tax, inflation, reinvestment, probability and terminal value are not generated.
- No rate recommendation. The tool does not calculate internal rate of return or choose a suitable discount rate.
- Six-point limit. Period 5 is the maximum so 6 arrows remain usable on a small screen.
Method and figures checked .
Useful Questions
Should outflows be entered as negative numbers?
Yes. Enter a £2,500 payment as -2500 and a £2,500 receipt as 2500. The sign controls the arrow direction and whether the amount counts toward inflows or outflows.
Why can NPV be lower than net cash flow?
At a positive discount rate, later receipts have less period-0 value. In the worked example, the £2,000 nominal gain becomes £804.45 at 5% because £12,000 of receipts arrives during years 1–3.
Is this a cash-flow forecast?
No. It draws only the 4–6 values you enter and does not generate sales, costs or payment timing. Use the related forecast generator for a 3-, 6- or 12-month operating forecast.
Sources
- HM Treasury — The Green Book (discounting methodology and public-appraisal context)
- IFRS Foundation — IAS 7 Statement of Cash Flows (formal cash-flow classifications)
Last updated: . Results are estimates based only on the entries and discount rate supplied.
About this tool
Created and maintained by CoryVu. Read how we check our tools and consult the sources and assumptions on this page.
Something unclear or incorrect? Report an issue.