I need help designing a financial model for [BUSINESS OR PROJECT]. The decision it will support is [DECISION TO MAKE], and the model period is [TIME HORIZON]. Use these source facts and figures only: [SOURCE DATA AND ASSUMPTIONS]. The required outputs are [REQUIRED OUTPUTS]. Act as an experienced corporate-finance modeller. First, list the assumptions you will use in an assumptions register. Separate supplied facts from assumptions you propose, state units and timing, and identify every assumption that needs my confirmation. Do not fill gaps with invented data. Then produce a build-ready model blueprint in this order: 1. Workbook tabs and the purpose of each tab. 2. A driver-based operating forecast, showing the causal chain from volume or customers to revenue, direct costs, operating expenses, working capital, capex, depreciation, tax, and cash flow as applicable. 3. A period-by-period calculation table. For each line, give the formula logic in plain English, units, and sign convention. Distinguish hardcoded inputs from formulas and link formulas to their source drivers rather than repeating numbers. 4. The decision outputs, including base case, downside case, and upside case. State the few variables that move the result most. 5. Model checks: balance sheet balances if relevant; beginning cash plus cash movement equals ending cash; no circularity unless explicitly intended; margins, growth rates, and units are internally consistent. Present numbers in a compact table suitable for transfer to Excel or Google Sheets, with a separate assumptions table. Flag any claim, formula input, or forecast assumption that is unsupported by my materials. Ask up to 3 clarifying questions only if a required input is missing. This is analytical support, not investment, tax, accounting, or legal advice; identify when a qualified professional should review the model.
Fill in
| Placeholder | What to enter | Example |
|---|---|---|
| [BUSINESS OR PROJECT] | Describe the company, initiative, asset, or project the model covers. | A US-based B2B SaaS company selling compliance software to mid-market manufacturers |
| [DECISION TO MAKE] | State the decision the model should inform, such as pricing, hiring, acquisition, or funding. | Whether to hire four account executives in January 2027 |
| [TIME HORIZON] | Enter the forecast start date, end date, and monthly, quarterly, or annual frequency. | January 2027 through December 2029, monthly |
| [SOURCE DATA AND ASSUMPTIONS] | Paste the known historical figures, contracts, operational drivers, and stated assumptions. | December 2026 ARR $2.4m; 220 customers; average annual contract $10,900; gross retention 90%; expansion 8%; new AE ramp: 2 deals month 4, 3 deals month 5 onward; gross margin 78%; cash $1.1m; fully loaded AE cost $145,000 per year |
| [REQUIRED OUTPUTS] | List the measures and scenarios you need, such as cash runway, EBITDA, IRR, or break-even month. | Monthly ARR, revenue, EBITDA, ending cash, runway, break-even month, and base/downside/upside cases |
How to use
- Paste the prompt and replace every bracketed field with source material you can trace.
- Confirm the assumptions register before transferring any forecast numbers into a workbook.
- Check that every calculated line has a named driver, a unit, and a time period.
- Follow up with: "Convert the blueprint into Excel row labels and formulas for the monthly forecast tab, without changing any assumptions."
Variations
Model audit
Use when you already have a spreadsheet and need a structured review.
Review this financial model for [PURPOSE OF MODEL] using the attached formulas or pasted rows: [MODEL CONTENT]. The known source figures are [SOURCE DOCUMENTS OR DATA]. Produce an audit memo with sections for broken links or hardcodes, timing errors, sign and unit errors, circular references, missing operating drivers, and output reasonableness. For every issue, cite the exact row or formula, explain the consequence, and give a corrected formula pattern. Do not assume missing facts. Ask up to 3 questions only where a formula cannot be interpreted.
Three-statement model
Use when building an integrated operating forecast with a balance sheet and cash flow statement.
Build a monthly three-statement model design for [COMPANY] from [START DATE] to [END DATE]. Use these historical balances and operating assumptions: [INPUT DATA]. I need [DECISION OUTPUTS]. Lay out the income statement, balance sheet, and cash flow statement in dependency order, including receivables, payables, deferred revenue, capex, depreciation, debt, and tax only where supported by my data. Show opening and closing balance formulas and reconciliation checks. Flag missing balance-sheet inputs rather than inventing them. Ask up to 3 essential questions.
Investment case
Use when comparing an investment, acquisition, or capital project against alternatives.
Create an investment-case analysis for [INVESTMENT OR PROJECT] with an initial outlay of [INITIAL INVESTMENT], projected benefits and costs of [CASH FLOW INPUTS], and a discount-rate range of [DISCOUNT RATE RANGE]. Produce a yearly unlevered cash-flow table, NPV and IRR calculations, payback period, and a sensitivity table for the two most material uncertain drivers. Explain timing conventions, terminal-value treatment if any, and which inputs need evidence. Do not present a recommendation as financial advice. Ask up to 3 questions if a required cash-flow component is absent.
Tips
- Build one assumptions tab and reference it everywhere; repeated hardcoded values are the fastest way for a model to drift.
- Choose the forecast grain from the decision: monthly is usually needed for runway, seasonality, and hiring timing, while annual periods can hide cash pressure.
- Keep revenue mechanics separate from accounting recognition when contracts, implementation periods, or deferred revenue matter.
- Test a downside case that changes operational drivers such as conversion, churn, collection days, or ramp time rather than applying an arbitrary percentage haircut.
FAQ
Can Claude create an Excel financial model directly?
It can specify workbook structure, rows, formulas, and validation checks. You should still inspect formulas and source links in the workbook before relying on it.
What data should I provide first?
Start with historical results, current balances, pricing or volume drivers, cost commitments, and the decision the model must answer. A model cannot resolve uncertainty that has not been identified.
Should I use AI for an investment decision?
Use it to organize analysis and test assumptions, not as a substitute for financial, accounting, tax, or investment advice from an appropriate professional.