Running Cash Balance (Money In/Out)

Excel Formulas › Business

All versionsRunning total

A check register or cash log needs a balance that updates with every row. Carry the previous balance forward and add money in, subtract money out — a tiny formula that builds a running ledger.

Quick formula: with money-in in B, money-out in C, and the balance in D (starting balance in D1):
=D1 + B2 - C2
Each row takes the balance directly above, adds that row’s deposits, and subtracts its withdrawals. Copy down.

Functions used (tap for the full reference guide):

SUM

The example

A simple cash ledger starting at $1,000.

ABCD
1ItemInOutBalance
2Start$1,000
3Sale$500$1,500
4Rent$800$700

The formula

Carry the balance forward each row:

=D2 + B3 - C3 // prev balance + in − out

How it works

The running balance references the row above:

  1. Put the starting balance in the first balance cell (D2).
  2. In the next row: =D2 + B3 - C3 — previous balance plus this row’s money in, minus money out.
  3. Copy down. Each row builds on the one above, so the balance always reflects everything up to that line.
  4. Blank in/out cells count as 0, so partial rows still work.

One combined amount column? If deposits are positive and withdrawals negative in a single column B, the balance is even simpler: =D2 + B3. Or use a self-contained running sum =SUM($B$3:B3) plus the opening balance.

Try it: interactive demo

Live demo

Lines as “in,out”; set the start balance.

Variations

Single signed column

Deposits +, withdrawals −:

=D2 + B3

Self-contained running sum

No reference to the row above:

=$D$2 + SUM($B$3:B3) - SUM($C$3:C3)

Flag overdraft

Warn on negative:

=IF(D3<0, "Overdrawn", "")

Pitfalls & errors

Don’t hardcode the start mid-column. Only the first balance cell is the opening figure; every other row must reference the row above, or the running total breaks.

Inserting rows. The =D2+B3-C3 form survives inserted rows better than a SUM range, but always check the first row after an insert still points to the opening balance.

Sort carefully. A running balance assumes chronological order — sorting by amount scrambles it. Sort by date only.

Practice workbook

📊
Download the free Running Cash Balance (Money In/Out) practice workbook
A cash ledger with a running balance, the signed-column, self-contained, and overdraft-flag variants, plus 4 challenges with answers. No sign-up required.

Frequently asked questions

How do I make a running balance in Excel?
Put the opening balance in the first balance cell, then in the next row use =previousBalance + moneyIn - moneyOut (e.g. =D2+B3-C3) and copy down.
What if deposits and withdrawals are in one column?
Use positive for deposits and negative for withdrawals, then the balance is just =previousBalance + amount (=D2+B3).
Why did my running balance break after sorting?
A running balance depends on row order. Sort only by date; sorting by amount or category scrambles the carried-forward total.

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Function references: SUM