Business

Working Capital Calculator

Working capital is the cash your business needs on hand to cover normal operating costs while you wait for revenue to arrive.

Monthly operating expenses
$
$
$
$
$
Liquidity and reserve target
$
$

Amounts you expect to collect in this period.

months

Your estimate

Working capital gap

$60,000

Monthly operating requirement

$41,000

Target reserve

$123,000

Available liquidity

$63,000

About 1.5 months of operating costs.

Liquidity falls short of your reserve target by $60,000. A gap is a planning figure, not a recommendation to borrow. Review which products match the pattern before deciding anything.

This calculator is an educational estimator. Results are illustrations based only on the values you enter. Kennify is not a bank, lender or financial adviser, does not make financing decisions, and does not guarantee approval, rates, terms or eligibility. Financing, if available, is provided by independent third-party providers under their own criteria.

How this works

Your monthly operating requirement is the sum of payroll, rent, inventory and supplier costs, marketing and other recurring expenses you enter.

Your reserve target is the monthly requirement multiplied by the number of reserve months you want to hold.

Available liquidity is cash on hand plus expected receivables. The gap or surplus is available liquidity minus the reserve target.

What your result means

A surplus means your current liquidity covers the reserve you set for yourself. A gap is the amount you would need to reach that reserve.

Receivables are counted at face value here. If your customers routinely pay late, consider entering only the portion you are confident will arrive in the period.

A gap is not automatically a reason to borrow. It is a planning figure that helps you size a request and decide whether a line of credit, factoring or a term product fits the pattern.

Keep reading on Kennify

Working Capital Calculator FAQ

Explore your financing options

When you have the numbers you need, you can review educational program pages on Kennify or begin a funding request through Kennify's financing partner.