Working Capital Calculator

The working capital calculator can be used by any business to estimate the cash needed to fund its working capital requirements.

Working capital is the amount of cash needed to fund the normal day to day trading operations of the business.

In a simple business it would be calculated as follows.

Working capital = Inventory + Accounts receivable – Accounts payable

The above definition of working capital is a narrow definition representing the funding needed to buy inventory and provide credit to customers, reduced by the amount of credit obtained from suppliers. The definition assumes cash is a non-operating asset and therefore it is excluded. This narrow definition is sometimes referred to as non-cash working capital.

working capital calculator

Our tutorials on the calculation of working capital and changes in working capital give full details of how this working capital calculator can be used.

The Excel file available for download below, will help you to carry out your own working capital calculations.

Working Capital Calculator Download

The working capital calculator is available for download in Excel format by following the link below.

Notes and major health warnings
Users use this accounting template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an accounting format that you might use. It is purely illustrative. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the template, please let us know and we will try to fix it.
Last modified February 14th, 2020 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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