Working Capital Calculator
Enter your current assets and liabilities to see your working capital position, ratio health, and cash runway. Includes a cash conversion cycle analysis, recommended financing amount at three tiers, and a dynamic product recommendation based on your numbers.
Enter your current assets and liabilities to see your working capital position, ratio health, and how much financing you may need.
All results update in real time. Add monthly expenses for a cash runway analysis.
Current Assets
Checking, savings, money market accounts
Money customers owe you
Value of goods in stock
Rent, insurance paid in advance
Current Liabilities
Money owed to suppliers
Loan payments due within 12 months
Wages, taxes, utilities owed
Other obligations due within 12 months
Your Working Capital Position
Net Working Capital
$70,000
Assets minus Liabilities
Working Capital Ratio
2.00
Healthy
Healthy Position
Comfortable margin for unexpected expenses and opportunities.
Working Capital Ratio Reference
| Ratio | Status | Meaning |
|---|---|---|
| < 1.0 | Critical | Liabilities exceed assets. Immediate action needed. |
| 1.0 - 1.2 | Tight | Barely covering obligations. Vulnerable to disruption. |
| 1.2 - 1.5 | Adequate | Meeting obligations with some buffer. |
| 1.5 - 2.0 | Healthy | Comfortable margin for unexpected expenses. |
| > 2.0 | Strong | Very healthy. Capital may be sitting idle. |
Your working capital looks healthy. A line of credit can provide extra flexibility for growth.
No impact to your credit score.
Get Working Capital OptionsUnderstanding Working Capital
Working capital is the money available for day-to-day operations: the difference between what you own (current assets) and what you owe (current liabilities) in the short term. Positive working capital means you can pay suppliers, cover payroll, and handle unexpected costs. Negative or tight working capital means you are constantly juggling, potentially missing payments, and vulnerable to any disruption.
The Working Capital Cycle
Cash flows through your business in a cycle: you pay suppliers for inventory, sell to customers, then wait for customers to pay you. The longer this cycle takes, the more working capital you need. If customers take 60 days to pay but you owe suppliers in 30 days, you need cash to bridge that 30-day gap. The cash conversion cycle analysis in this calculator measures exactly how long your money is tied up. Shortening the cycle by speeding up collections or negotiating longer supplier terms reduces your working capital needs. Our invoice factoring calculator shows what it costs to convert receivables to cash immediately.
Financing Options for Working Capital
A business line of credit is the most common choice for working capital because you draw only what you need and pay interest only on what you use. For one-time needs with a clear payback plan, a short-term term loan works well. If slow-paying customers are the root cause, invoice factoring converts receivables into immediate cash. For larger businesses, asset-based lending can secure a facility against your receivables and inventory.
Signs You Need Working Capital Financing
Common warning signs: regularly delaying supplier payments, struggling to make payroll on time, turning down opportunities because of cash constraints, seasonal slow periods that drain reserves, or growing fast and cash cannot keep up with expenses. If any of these sound familiar, use this calculator to quantify the gap. Check your DSCR to see how lenders will evaluate your capacity, or use our line of credit calculator to estimate costs. Talk to a funding specialist to compare your options with no credit impact.
How It Works
Enter Your Assets & Liabilities
Input your current cash, receivables, inventory, payables, and short-term debt. Add monthly expenses for a deeper analysis.
See Your Position
Get your net working capital, ratio health indicator, cash runway, and cash conversion cycle in real time.
Get a Recommendation
See how much working capital financing you may need at three tiers: minimum, comfortable, and growth mode.
What You Get
Working Capital Ratio
Your ratio with a color-coded health indicator: critical, tight, adequate, healthy, or strong.
Assets vs Liabilities Visual
Side-by-side bar comparison showing the breakdown of your current assets and liabilities.
Cash Conversion Cycle
Days Inventory Outstanding, Days Sales Outstanding, Days Payable Outstanding, and total cycle in days.
Cash Runway Analysis
How many months your current cash covers, plus the gap to reach 3-month and 6-month targets.
Financing Recommendation
Three tiers of recommended financing: minimum, comfortable (with buffer), and growth mode.
Dynamic CTA
A specific next step based on your ratio and recommended financing amount.
Working Capital Calculator — Frequently Asked Questions
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Our calculators give you estimates. Our funding specialists give you real offers tailored to your business.
Get Your OptionsRelated Tools
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Calculate how much cash you will receive from factoring invoices, including advance amount, fees, and effective APR.
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