Working Capital Calculator for 2026
Calculate your net working capital and working capital ratio from current assets and liabilities, plus a projected future need.
How Working Capital Is Calculated
Working capital is the dollar cushion left after current liabilities are subtracted from current assets. The working capital ratio expresses the same relationship as a proportion.
A working capital ratio between 1.2 and 2.0 is generally considered healthy. A ratio below 1.0 (negative working capital) can signal financial distress — though it's normal and often efficient for high-inventory-turnover businesses that collect cash from customers before paying suppliers.
How to Use the Working Capital Calculator
Enter Total Current Assets
Cash, receivables, inventory, and any other assets expected to convert to cash within 12 months.
Enter Total Current Liabilities
Accounts payable, short-term debt, and any other obligations due within 12 months.
Set a Projected Growth Rate
Your expected revenue growth over the next 12 months, used to project future working capital needs.
Review your results
See your working capital dollar amount, working capital ratio, and a projected figure for next year.
Real-World Scenario Example
"A business has $150,000 in current assets and $90,000 in current liabilities, and expects 10% growth next year."
Inputs
Result
Working Capital = $60,000, Working Capital Ratio = 1.67 (healthy range), Projected Working Capital = $66,000 next year.
Important Disclaimer
This calculator provides an estimate based on the balances you enter. Actual working capital needs vary by industry, seasonality, and growth trajectory, so use this alongside a detailed cash flow forecast for planning purposes.
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