Business Finance
Working Capital Calculator
Operating cycle, working capital requirement and the bank finance it may support.
Result
Formula
- Operating cycle = Inventory days + Receivable days − Payable days
- Inventory = COGS × Inventory days ÷ 365; Receivables = Sales × Receivable days ÷ 365; Payables = COGS × Payable days ÷ 365
- Working capital gap = Inventory + Receivables − Payables; Bank finance = Gap × (1 − Margin)
Assumptions
- Inventory and payables are measured against cost of goods sold; receivables against sales.
- A 365-day year. Other current assets and liabilities are ignored.
- Bank finance shown is indicative only, following the second method of lending (25% margin). Lenders apply their own norms.
Illustrative only. This calculator shows results from the inputs and assumptions above. It is not personalised professional advice and does not consider your specific facts. Rates were last checked on 9 November 2026.