Working capital calculator
Shows the money available to run day-to-day operations after covering short-term obligations.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter current assets, current liabilities and annual revenue (optional).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Working capital = current assets − current liabilities. Share of revenue = working capital ÷ annual revenue × 100.
Example
Inputs: Current assets = 400,000, Current liabilities = 250,000, Annual revenue (optional) = 1,500,000. Result: Working capital: 150,000.00; Status: Positive: current assets cover liabilities; Current ratio: 1.6 times.
Limits and caveats
- Negative working capital is not always a problem; some retailers collect from customers before paying suppliers.
- It is a snapshot and moves with the seasons.
Questions about this tool
How is working capital different from the current ratio?
Working capital is an amount of money; the current ratio divides the same two figures.
Why add revenue?
To compare working capital with the size of the business: 150,000 is a lot for a small firm and little for a large one.
How can I improve working capital?
Collect receivables faster, cut slow-moving stock and negotiate longer payment terms with suppliers.