How does the forecast work?

Fiscal Flowcast's forecasting engine projects your financial future by looking at your current balances, recurring income and expenses, investment returns, and loan payments. It uses that data to show you where your net worth, cash flow, and accounts are headed—so you can make smarter financial decisions today.

What data does the forecast use?

The forecast pulls from several sources in your Fiscal Flowcast account:

Current balances: The actual balance in each account (checking, savings, investments, loans, etc.).
Recurring transactions: Income (paychecks, dividends) and expenses (rent, utilities, subscriptions) that repeat on a schedule. These are the most important—they show what's coming in and going out regularly.
Investment returns: Expected annual returns you set for investment accounts. The forecast compounds these over time.
Loan payments: Principal and interest payments for mortgages, auto loans, and other debts. The forecast tracks payoff schedules.
Not included: A one-time transaction such as a bonus, a tax refund, or a vacation bill. Those entries do not move the forecast. On Basic, Cash Flow what-if can add a one-time item.

How it calculates projections

Here's what happens under the hood:

We take your current balances for each account.
We apply recurring transactions forward in time. For example, if you have a $3,000/month salary and $2,500/month in expenses, we net that into your checking account each month.
For investments, we apply your expected annual return rate, compounded monthly or daily depending on account type.
For loans, we calculate remaining payments and apply them month-by-month until the loan is paid off.
Property values are projected based on historical appreciation rates (if set).
We sum all projected account balances to get your net worth forecast.

Types of forecasts

Net Worth Forecast: Your total assets minus liabilities over time. Available on all plans.
Cash flow forecast: Bills and income ahead, on Cash Flow → Forecast. On Basic. Bills, Income, and Recurring stay available on Free.
Account Forecast: The balance of a specific account (checking, investment, loan) over time. Available on BASIC and higher.
Entity Forecast: All accounts for a specific entity combined. Available on BASIC and higher.
Property & Loan Forecast: Project property appreciation and loan payoff timelines. Available on BASIC and higher.

Time horizons

You can view forecasts over different periods: weeks, months, or years. Shorter periods (weeks or months) are best for cash flow planning—they show when you might be tight on cash. Longer periods (years or decades) are best for net worth planning—they show long-term trends and when major milestones (like loan payoff) will occur.

Cash flow what-if

Cash flow what-if is on Basic. On Cash Flow → Forecast you can adjust bills and income and add one-time items. Basic includes 1 saved what-if. Premium includes unlimited saved named scenarios. There are no Conservative, Baseline, or Aggressive scenarios.

Improving forecast accuracy

Keep recurring transactions up-to-date: The forecast only knows about income and expenses you've told it about. Add or update recurring transactions when your financial life changes.
Set realistic investment returns: Check your historical returns and use a reasonable expected return for the future (typically 5-10% for stock portfolios).
Account for a repeating change: Update the recurring income or bill. A one-time transaction will not move the forecast. For a home, a job change, or retirement, use that decision page.
Review forecasts regularly: Your forecast is only as good as your assumptions. Update it when circumstances change.

Limitations and considerations

Past performance doesn't guarantee future results: Investment returns vary year to year. The forecast shows an average, not a guarantee.
Tax impacts: The forecast doesn't automatically account for taxes on investments or income. Adjust your recurring expenses if needed.
Unexpected events: Job loss, market crashes, or emergencies aren't predicted. Use the forecast as a guide, not a certainty.
Rounding: Very long forecasts (20+ years) may show small rounding errors in final balances.

See also Setting Financial Goals, Understanding Net Worth, and Recurring Transactions.

Understanding Net WorthLearn how net worth is calculated and how to interpret your financial projections.
Setting Financial GoalsDefine and track your financial goals including savings, emergency funds, and major purchases.
Recurring TransactionsSet up recurring income and expenses (rent, salary, subscriptions) for accurate forecasting.

How does the forecast work?