Working Capital Calculator Pro
Estimate the cash tied up in operations, spot funding gaps, and test practical what-if scenarios.
Your Numbers
Use the latest figures from your books. You can change them anytime.
Current Assets
Current Liabilities
Operating Cycle Assumptions
Advanced funding planning
Enter totals directly, or leave blank to use the balance-sheet figures from the first tab.
Quick Ratio excludes inventory. Leave the fields blank to use the balance-sheet figures from the first tab.
Working Capital Dashboard
See liquidity, operating-cycle and funding signals at a glance.
Scenario Lab
Test common business changes without changing your saved base figures.
Where Current Assets Are Sitting
Assets vs Liabilities
Smart Business Insights
Automatic observations based on your numbers.
What Moves Your Cash the Most?
📘 Net Working Capital
Current Assets minus Current Liabilities. It is a balance-sheet measure of short-term liquidity.
⚖️ Current Ratio
Current Assets divided by Current Liabilities. The right level varies by industry and business model.
⚡ Quick Ratio
(Current Assets minus Inventory) divided by Current Liabilities. It focuses on assets that are generally more liquid than stock.
🔄 Cash Conversion Cycle
Inventory Days + Collection Days − Supplier Days. It estimates how long cash is tied up in the operating cycle.
📌 Practical MSME Actions
Frequently Asked Questions
What is net working capital?
Net working capital = Current Assets − Current Liabilities. It is a balance-sheet measure of short-term liquidity.
What is a good current ratio for an MSME?
There is no single ideal ratio for every MSME. Use industry context and your own trend rather than one fixed benchmark.
What is the working capital requirement?
It is the amount of funds your operating cycle may need to keep inventory, receivables and day-to-day operations moving after supplier credit and other funding sources are considered.
What is the cash conversion cycle?
Cash Conversion Cycle = Inventory Days + Collection Days − Supplier Days. A shorter cycle generally means cash returns to the business faster.
Why is quick ratio lower than current ratio?
Quick Ratio excludes inventory, so it focuses on a narrower set of current assets.
Can working capital be negative?
Yes. Negative net working capital means current liabilities exceed current assets; whether that is a problem depends on the business model and cash cycle.
How does the calculator estimate WC requirement?
It estimates inventory funding from COGS and inventory days, receivables from credit sales and collection days, subtracts supplier credit, then adds the selected cash buffer and seasonal buffer.
What is the funding gap?
In this tool, funding gap is the estimated working-capital requirement minus your specified own funds. Gap after finance additionally subtracts your specified existing WC finance limit.
Can exporters use this calculator?
Yes. Exporters can adjust collection days, inventory days, cash buffer and funding limits to reflect longer order-to-cash cycles. Currency and trade-finance costs still need separate analysis.
Does cash credit equal working capital?
No. Working capital describes funds tied up in short-term operations; cash credit is one possible financing facility used to fund those needs.
Can this calculator replace a CA or bank assessment?
No. Use it for planning and discussion. Actual lending limits and financial assessments depend on the lender, financial statements, banking arrangements and business-specific factors.
How often should I update the calculation?
Monthly is a useful minimum for many MSMEs, and more often when sales, inventory, credit terms or seasonality change materially.
Disclaimer: This calculator provides estimates for education and business planning. Working-capital needs, funding limits, bank assessments and industry norms vary by business. Verify decisions with your books, lender and qualified financial professional where appropriate.