Finance · Free tool
Working Capital Calculator
How much money is tied up in the day-to-day trading cycle? This calculator adds what customers owe you and what sits in inventory, then subtracts what you owe suppliers. The answer is the operating working capital the business has to fund. It suits controllers, CFOs, and owners preparing a cash or bank review.
- OutputWorking capital
- No sign-up
- Copy or print the result
- How it works ↓
Your entries stay in this browser. Use Fill example to see a finished page first.
What this finance tool gives you
The result shows working capital as the headline, with receivables, inventory, and payables listed beside it. That layout makes it easy to explain to a lender or a board which of the three pieces is driving the number and where a change in terms would free cash.
What you enter
- Currency: USD by default, or EUR or GBP (only changes how amounts are formatted)
- Receivables: amounts customers owe you
- Inventory: the value of stock on hand
- Payables: amounts you owe suppliers
Worked example
The tool's example has $42,000 of receivables, $18,000 of inventory, and $15,000 of payables. Adding receivables and inventory gives $60,000; subtracting payables leaves $45,000 of working capital. That is the amount of funding the trading cycle absorbs before any cash in the bank is counted.
How is working capital calculated here?
Working capital = receivables + inventory − payables. All three amounts must be zero or more.
This is a trade or operating working capital sketch. Cash is deliberately left out, and so are other current assets and liabilities such as short-term loans or accrued taxes, so the figure differs from the textbook current assets minus current liabilities. It shows the money locked in the operating cycle rather than overall liquidity.
Tips before you use the result
- Use balances from the same date. Mixing a month-end receivables figure with today's payables distorts the result.
- Pair this with the receivables, inventory, and payables days calculators to see which part of the cycle is slow.
- A rising working capital figure while sales are flat usually means cash is getting stuck in collections or stock.
- Because cash is excluded, do not read a positive result as a sign the company is liquid; check the bank balance separately.
Frequently asked questions
What is the working capital formula?
The textbook version is current assets minus current liabilities. This calculator uses the narrower operating version: receivables plus inventory minus payables. It focuses on the cash tied up in selling and buying, and leaves out cash, loans, and other items. With the example figures, $42,000 + $18,000 − $15,000 = $45,000.
Why is cash not included in working capital here?
The tool is designed to show how much funding the trading cycle needs, and cash is what funds it rather than part of the cycle. Keeping cash out lets you see whether collections, stock levels, or supplier terms are absorbing money. Check liquidity separately with your bank balance and the runway calculator.
Is higher working capital better?
Not necessarily. A larger figure means more money is tied up in receivables and inventory relative to payables. That can be a sign of slow collections or excess stock. Many businesses try to keep operating working capital lean while still serving customers and paying suppliers on time.
Are my balances uploaded when I use this calculator?
No upload happens. The three balances are held in the browser on your device, and you can use the tool without creating an account or handing over an email address. Use the Clear button whenever you want to wipe the stored figures.
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Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: September 2026 · Kurums editorial team.