Working Capital Calculator

Working capital is the lifeblood of business operations—the cash needed to fund day-to-day activities like buying inventory, paying salaries, and paying suppliers. Calculated as Current Assets minus Current Liabilities, working capital must be positive and sufficient. For a manufacturing business, working capital includes: cash held, inventory on hand, receivables from customers, minus payables to suppliers and salaries owed. A business might be profitable on paper but run out of cash if working capital is insufficient. For example, if a business buys inventory for ₹10 lakh on 30-day credit but customers pay only after 60 days, it needs ₹10 lakh in working capital to bridge the gap. Indian MSMEs often struggle with working capital constraints despite profitability because suppliers demand immediate payment while customers delay payments. Banks provide working capital loans specifically for this gap. Startups must plan working capital carefully; running out of working capital is the #1 reason startups fail. This calculator helps forecast working capital needs and identify where cash gets tied up, enabling better cash flow management.