Calculate your daily, monthly and total Cash Credit (CC) interest based on your outstanding balance, annual interest rate and number of days.
Know How Much Working Capital Your Business Really Needs
Free ToolCurrent Assets
Current Liabilities
Uses Current Assets and Current Liabilities from the Working Capital tab. Fill those values first, or enter totals below.
Quick Ratio excludes inventory. Uses assets/liabilities from Working Capital tab when available.
See how sales growth or inventory/debtor changes affect working capital need.
Working capital is the money available for day-to-day operations: Current Assets minus Current Liabilities. Positive WC means you can cover short-term obligations.
Current Assets ÷ Current Liabilities. A ratio around 1.5–2.0 is often considered healthy for many MSMEs, but ideal levels vary by industry.
(Current Assets − Inventory) ÷ Current Liabilities. Measures ability to pay short-term debts without selling stock.
Days Inventory + Days Receivable − Days Payable. Shorter cycles mean cash returns faster to the business.
Net working capital = Current Assets − Current Liabilities. It shows short-term liquidity available for operations.
Often 1.5 to 2.0 is comfortable, but trading firms may run leaner and manufacturers may need higher coverage.
Because inventory is excluded. Inventory may not convert to cash quickly.
Based on operating cycle: funds tied in inventory and receivables, minus credit from suppliers, scaled to your sales and expenses.
Time (in days) between paying for inputs and collecting cash from customers.
Yes. It means current liabilities exceed current assets — a liquidity risk that needs attention.
No. Excess or slow-moving stock locks cash and weakens the quick ratio.
Factor longer shipment and collection cycles, currency risk, and packing credit / export finance products.
Cash credit is a financing facility often used to fund working capital needs; WC itself is a balance-sheet measure.
At least monthly, and whenever sales, credit terms, or inventory policy change.
It varies widely by industry. Track your own trend rather than a single benchmark.
Longer payable periods reduce WC need, but must stay within supplier relationships and discounts lost.
Inventory days + receivable days — how long cash is tied in operations before collection.
No. Use it for planning and education; consult professionals for financing and compliance decisions.
Peak seasons often need higher inventory and receivables funding — plan facilities in advance.
Disclaimer: This calculator provides estimated values for educational and business planning purposes only. Actual working capital requirements depend on your business model, industry, operating cycle and financial policies.
Cash Credit interest is the interest charged by a bank on the amount actually utilized from a sanctioned Cash Credit facility. Interest is generally calculated on the outstanding amount rather than the entire sanctioned limit.
Cash Credit interest can generally be estimated using:
Interest = (Outstanding Amount × Annual Interest Rate × Number of Days) ÷ (Days in Year × 100)
Banks may use different calculation conventions depending on their terms and policies.
Generally, interest is charged on the utilized or outstanding amount rather than the entire sanctioned limit, subject to the terms of the lending bank and facility.
Cash Credit is generally a working-capital facility provided to businesses, while an overdraft facility allows borrowing beyond the available account balance under agreed terms. Specific features vary by bank and facility.
Yes. Enter your outstanding amount, annual interest rate and number of days in the calculator to estimate the interest payable.
This calculator provides an estimated Cash Credit (CC) interest calculation for informational purposes only. Actual interest charged by your bank may vary based on the applicable interest rate, daily outstanding balance, compounding method, penal interest, fees and your loan agreement. Always verify the final interest amount with your bank or financial institution.
For official information on banking and working-capital credit, refer to:
RBI guidance confirms that banks may structure and price working-capital facilities according to applicable regulations and their lending policies. Always check your bank’s latest terms and sanction letter for the exact interest calculation method.