Calculator
Working capital calculator: how much your business needs
Most cash shortfalls come from timing, not from a lack of sales. Enter your monthly costs and how long your cash is tied up to estimate the working capital your business needs and the gap left to fund.
Working capital calculator
Estimate how much cash your business needs to cover the time between paying your costs and getting paid. The example numbers are placeholders. Replace them with your own.
Payroll, rent, utilities, insurance
In your business bank accounts
0 if you are paid at the time of sale
From purchase until sold or used
Optional: a large order, repair or hire
Illustrative estimate, not an offer. It uses a 30-day month and treats costs as spread evenly through the month. Seasonal businesses should run it for their busiest and slowest months.
How much working capital does a business need?
Enough to cover its costs for as long as its cash is tied up. That time is the cash cycle: the days stock or materials sit, plus the days customers take to pay, minus the days you take to pay suppliers. Multiply your daily operating cost by the cash cycle, add any one-time cost coming up, and subtract the cash you already hold. What is left is the gap to fund.
How to use the calculator
- Enter your monthly numbers. Revenue, cost of goods or materials, and operating expenses such as payroll and rent. Use an average of your last three months.
- Enter your timing. How long stock or materials sit, how long customers take to pay, and how long you take to pay suppliers.
- Add cash on hand and any large one-time cost you see coming.
- Read the funding gap and the note under it.
If you are paid at the time of sale, as most restaurants and shops are, enter 0 for the days customers take to pay.
How the math works
- Cash cycle = days stock sits + days customers take to pay − days you take to pay suppliers.
- Operating cost per day = (cost of goods + operating expenses) ÷ 30.
- Cash needed to cover the cycle = operating cost per day × cash cycle.
- Total working capital needed = cash needed to cover the cycle + any one-time cost.
- Funding gap = total needed − cash on hand.
Picture a wholesaler with $100,000 in monthly costs. Stock sits for 20 days, customers pay in 30, and suppliers are paid in 15. The cash cycle is 35 days, so about $116,700 is tied up at any time. With $40,000 in the bank, the gap is about $76,700. This is an illustration, not a client example.
For the basics, read what is working capital.
How to shrink the gap without borrowing
Every day you take off the cash cycle lowers the amount you need. Before you fund the whole gap, look at:
- Getting paid faster. Invoice the day the work is done, take deposits on large jobs, and follow up on late invoices early.
- Holding less stock. Order closer to when you need it and clear slow items.
- Longer supplier terms. A supplier who trusts you will often extend terms if you ask.
- Timing large costs. Schedule big purchases for your strongest months.
Which funding fits which gap
| If the gap is mostly | What usually fits | Speed |
|---|---|---|
| A cash cycle that repeats every month | Business line of credit: draw when cash is tied up, pay down when customers pay | Open in 48–72 hours once approved |
| A one-time cost | Working capital as a single lump sum | As little as 24–48 hours once approved |
| Payroll ahead of a late payment | Payroll funding | As little as 24–48 hours once approved |
| Stock ahead of a busy season | Inventory financing | As little as 24–48 hours once approved |
Faster funding usually costs more in total than bank financing. Compare offers by the total amount you repay and the term, and borrow only what the gap calls for.
If your business is seasonal
Run the calculator twice: once with the numbers from your busiest month and once from your slowest. The busy-season figure shows how much cash growth will tie up. The slow-season figure shows what you need to carry fixed costs. Plan around the larger of the two, and arrange funding before the season starts, when your recent statements look strongest.
How RAN Funding helps
RAN Funding is a business financing company, not a bank. You complete one application for our lender network and work with one dedicated specialist. We arrange $20,000–$500,000+, with decisions in hours on complete files and funding in as little as 24–48 hours once approved. Our programs are built for established businesses: most clients have 1+ year in business and $20,000+ in monthly revenue. To apply you need a short application and your last 3 months of business bank statements (4 months in California, New York and Virginia).
Common questions
Is this working capital calculator free?
Yes. It runs in your browser, and nothing you type is sent or saved.
What is a cash cycle?
The number of days your cash is tied up between paying your own costs and collecting from customers. It is the days stock sits, plus the days customers take to pay, minus the days you take to pay suppliers.
What if my cash cycle is zero or negative?
Then customers pay you before your own bills come due, and the cycle itself needs no funding. You may still need working capital for one-time costs or seasonal swings.
Is this the same as the working capital formula on a balance sheet?
No. The balance sheet formula is current assets minus current liabilities, which is a snapshot. This calculator estimates how much cash your operations tie up, which is more useful for planning.
How much working capital can my business qualify for?
It depends mainly on your monthly deposits and time in business. RAN Funding arranges $20,000–$500,000+. Your specialist can give you a realistic range after reviewing your statements.
Is RAN Funding a direct lender?
No. RAN Funding is a business financing company that works with a network of lenders and funding partners. You complete one application and work with one dedicated specialist.
Have a working capital gap to cover?
One application for our lender network, one dedicated specialist. $20,000–$500,000+, funded in as little as 24–48 hours once approved.
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