Working Capital Calculator

Estimate your working capital gap from receivable days, inventory days and payable days.

Estimated gap (3 months)
—
FormulaRec+Inv−Pay+3×OH

How to use the Working Capital calculator

  1. Enter annual sales and purchases.
  2. Add receivable, inventory and payable days.
  3. Read the working capital requirement.

Good to know

  • Banks often fund up to 75–80% of the working capital gap through a cash credit or overdraft limit; the rest is expected to come from your own margin.
  • Use average balances from the last 12 months rather than year-end figures if your business is seasonal.
  • Cutting receivable days by even 15 days frees cash immediately; check the debtor days calculator to see how much.

About this tool

Working capital is the cash tied up between paying suppliers and getting paid by customers. This sizes that gap so you know what to fund.

Built and reviewed by Savitar Finance (savitarfinance@gmail.com). Rules and rates last checked October 2026. How we calculate · Report a problem

Questions people ask

How is working capital requirement calculated?

Roughly: (receivables + inventory − payables), each measured in days of sales or purchases.

How can I reduce the gap?

Collect faster, hold less stock, or negotiate longer supplier credit.