FINANCE TEMPLATE
Financial Model Assumptions Template
Document and validate the assumptions behind a financial model: revenue, costs, scenarios, and change log.
Use this templateWhat's inside
Field | Details |
|---|---|
Model | Name of the financial model or forecast |
Author | |
Last Updated | |
Status | Active |
What This Model Does
One paragraph: what this model forecasts, what decisions it supports, and where the model lives (link to the spreadsheet).
Revenue Assumptions
Assumption | Value | Basis | Sensitivity | Last Validated |
|---|---|---|---|---|
Growth rate | XX% MoM / YoY | Historical trend / market data / gut | High | |
Average deal size / ARPU | $X,XXX | Medium | ||
Conversion rate | X% | High | ||
Churn rate | X% monthly | High | ||
Pricing change | None / +X% at [date] | Low |
Cost Assumptions
Assumption | Value | Basis | Sensitivity | Last Validated |
|---|---|---|---|---|
Headcount growth | +N per quarter | Hiring plan | Medium | |
Avg. fully loaded cost per employee | $XXX,XXX | HR data | Low | |
Infrastructure cost scaling | $X per Y users | Historical unit economics | Medium | |
Marketing spend | XX% of revenue | Industry benchmark / past performance | Low |
Other Assumptions
Assumption | Value | Basis | Sensitivity |
|---|---|---|---|
Tax rate | XX% | Statutory / effective | Low |
Exchange rate | X.XX | Current rate / hedged rate | Low |
Payment terms impact on cash | Net 30 / Net 60 | Customer contracts | Medium |
Scenarios
What happens when key assumptions change? Focus on the assumptions with High sensitivity.
Scenario | What Changes | Revenue Impact | Margin Impact |
|---|---|---|---|
Bull case | Higher growth rate + lower churn | ||
Base case | Assumptions as stated above | ||
Bear case | Lower growth + higher churn + delayed deals | ||
Stress test | Key customer lost / market downturn |
Validation
Check | Frequency | Last Done | Result |
|---|---|---|---|
Forecast vs. actuals comparison | Quarterly | Variance within X% / flag assumptions off by >20% | |
Review with finance + leadership | Each planning cycle | ||
Sensitivity test on High-rated assumptions | When assumption changes |
Change Log
Date | Assumption Changed | Old Value | New Value | Reason |
|---|---|---|---|---|
Other Finance templates
-
Budget ProposalBudget request with breakdown, ROI analysis, alternatives, and staged approval. -
Expense Report SummaryPeriod expense summary: spend vs. budget, variances, policy exceptions, and optimization opportunities. -
Investment MemoInvestment evaluation with financial analysis, scenarios, assumptions, risks, and recommendation.