Contractor Financing: Project Cash Flow Estimating Calculator

Are you getting ready to take on a new commercial project? Do you know how much cash you’ll need to get started on that project?

Welcome to the contractor cash flow estimating calculator this is a great tool to calculate how much cash you need to take on and start a project so what you did in the beginning was you entered the contract value which was how much you’re going to get paid for this project you entered the months to complete how long it’s going to take to complete this project

On a scale from one month up to 12 and then you entered the material labor and overhead costs as a percentage of the project that’s going to give you your final profit so if you’re shooting for a 25 profit which would be pretty high that would be this if you want to change these up a little bit we can make this 25 or and 15 you’ll see that your profit drops a

Little bit so in this scenario you’re going to start at the top here and you’re going to see the difference between using financing material purchase financing and not using material purchase financing without material purchase financing on a million dollar project 45 is material 25 is labor and 15 is overhead you’re going to have a profit of 15 at the end of

This project but it’s going to require a 170 000 to get started on the project additionally the months to break even which is right here this tells you when you’re actually going to make your first amount of money from the project you may be cash flow positive in a given month but how much have you put into the project and then how much revenue have you made

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Where you finally break even is month 11 in this scenario this box to the right shows how much cash is required with material purchase financing as you can see you only need 82 700 and your months to break even gets almost cut in half to six so instead of 11 months you now only need six months to now break even and start actually making positive cash if you

Scroll down here you’ll see this is a cash flow model right here that you can actually track month by month what your cash flow looks like this toggle up at the top are you using material purchase financing or not if it’s on no you’re going to see this model shift to only show your cash flow without material purchase financing if you toggle it on yes you’ll see

It’s going to show you how this model looks with material purchase financing this project details section allows you to change your assumptions along the way so you can you know change your your percentage of material labor overhead as well as your months to complete and then down at the bottom here these are some of the assumptions to the model the number of

Days to collect your invoice from starting work we’re assuming 85 days which is about average without financing material costs are due the month the work is performed so you can see right here if we’re not using material purchase financing you’re gonna owe material in month one month two month three if you are using material purchase financing you’ll see that

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It starts out here because you’re going to finance in the beginning the next assumption is material labor and overhead costs are spread out evenly over the duration of the project that just assumes that if it’s a 10 month project and we’re going to be spending 450 000 on material for those 10 months we’re going to be spending 45 000 each month so you can see it

Goes all the way out here that’ll be 10 months worth of material same thing with labor same thing with overhead these are spread out evenly and lastly the material finance charge assumes a two percent cost per month and you could see when material purchase financing is on there is a finance charge associated with the financing and when it’s not you’ll see that

That is blank if you have any questions feel free to give us a call at 512 270 that’s 512-270-4805 or feel free to shoot us an email at grow build.com good luck

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Contractor Financing: Project Cash Flow Estimating Calculator By Billd – Terms Built for Construction