Free Working Capital Calculator
Calculate working capital using current assets and current liabilities to evaluate short-term liquidity.
When to use this calculator
Working capital is current assets minus current liabilities — the net short-term funding tied in operations. CFOs and treasury review it monthly with cash flow forecasts and bank covenants. Recalculate after large inventory builds, AR factoring, or reclassified debt.
Methodology and inputs
Working capital = current assets − current liabilities at a point in time. Changes in working capital bridge net income to operating cash flow in indirect cash statements.
Worked example
Contract manufacturer: current assets $3.62M (AR $2.1M, inventory $1.35M, cash $170k), liabilities $1.94M. Working capital = $1.68M. A $200k inventory reduction with AR flat releases $200k cash if liabilities unchanged.
How to interpret the result
Growing working capital with flat sales consumes cash — 'profit without cash.' Negative working capital can be healthy in high-turn retail models but risky if unexpected.
Reviewed by ZBI Tools · Practical finance and operations calculators for SMB teams.
Further reading
For a deeper walkthrough of the concepts behind this tool, see our guide: Read the full analysis guide.
Related hub: Browse all calculators · Analyzers & calculators home · About Zen Box Infinity
Practical questions
Include cash in working capital?
Yes — it is a current asset; some metrics exclude cash for 'operating working capital.'
Point vs average?
Point for balance sheet snapshot; average for trend with revenue.
Working capital ratio?
Different metric — often current assets ÷ liabilities; do not confuse with net WC.
Formulas
Working Capital = Current Assets − Current Liabilities
Example: Current assets EUR 280,000; liabilities EUR 140,000 → working capital EUR 140,000.
Source: ZBI Business Control Library — working-capital.
FAQ
What is working capital?
Short-term resources available after covering near-term obligations.
Can working capital be negative?
Yes—it signals liquidity pressure if persistent.