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Working Capital
Assess your business's short-term financial health. Calculate available working capital instantly.
Last Updated: March 1, 2025
# What is Working Capital?
Working Capital measures a company's liquidity and operational efficiency by subtracting current liabilities from current assets.
# How Does Working Capital Work?
- 1Enter Current Assets (Cash, Inventory, Receivables).
- 2Enter Current Liabilities (Payables, Short-term debt).
- 3View Net Working Capital and Ratio.
# Formula Used
`Working Capital = Current Assets - Current Liabilities`# Common Use Cases
Business liquidity check.
Loan application preparation.
Operational planning.
# Why Use This Tool?
Health Check: Positive is good, negative warns of trouble.
Ratio provided for benchmarking.
Simple inputs.
Trusted & Secure
• Calculations are performed entirely in your browser.
• No signup, no data storage, no tracking.
• Formulas based on standard financial principles.
# Frequently Asked Questions
What is a good ratio?▼
A ratio between 1.2 and 2.0 is generally considered healthy.
What causes negative working capital?▼
Buying too much inventory with cash, slow customer payments, or high short-term debt.
How can I improve working capital?▼
Collect receivables faster, negotiate longer payment terms with suppliers, and manage inventory efficiently.
Last updated: March 2025 • v2.1.0 • Secure Client-Side Processing