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Cash flow sign convention

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The cash flow sign convention is that money you pay out has a minus sign, while money you take in has a plus sign (or no sign).[1]

  • Most financial calculators (and spreadsheets) follow the Cash Flow Sign Convention. This is simply a way of keeping the direction of the cash flow straight. Cash inflows are entered as positive numbers and cash outflows are entered as negative numbers. [1]

See also

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References

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  1. ^ Koster, Lisa. "Cash Flow Sign Convention – Using signs (negatives) in Formulas". {{cite journal}}: Cite journal requires |journal= (help)
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