In this example, increasing cash assigned to project from 2,000 to 2,200 changes the result from -1,500 to -1,300 . All other inputs stay the same.
Try this with your own numbersFormula and worked example
Cash balance = assigned cash + collected deposit − materials − labour − other payments
| Input | Example |
|---|---|
| Cash assigned to project | 2,000 |
| Deposit already collected | 3,000 |
| Materials due before next payment | 3,500 |
| Labour due before next payment | 2,500 |
| Other payments due | 500 |
| Calculated result | -1,500 |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this insulation installation calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one installation.
- Insulation: include the portion belonging to this installation or reporting period, and record where the value came from.
- Access: include the portion belonging to this installation or reporting period, and record where the value came from.
- Crew time: include the portion belonging to this installation or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Can a profitable milestone contract still need upfront cash?
Only include cash already available and payments due before the next receipt. A negative balance identifies a timing gap.
What if this input changes?
If cash assigned to project rises by 10%, this example changes by 200 . This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.