Free Working Capital Calculator
Measure your business liquidity instantly
Enter your current assets and current liabilities to instantly calculate working capital and current ratio — with a clear liquidity health indicator.
Current Assets
Current Liabilities
What Is Working Capital?
Working capital is a key financial metric that measures a business's short-term liquidity — its ability to pay current liabilities using current assets. Calculated as Current Assets minus Current Liabilities, it tells you whether the business has enough liquid resources to cover day-to-day operations and short-term debts. The current ratio provides a proportional measure: a ratio above 2 is considered healthy, between 1 and 2 is acceptable, and below 1 warrants attention.
How to Use the Working Capital Calculator
Step 1 — Enter Current Assets
Input your cash & bank balance, accounts receivable (money owed by customers), inventory value, and any other current assets.
Step 2 — Enter Current Liabilities
Input accounts payable (money owed to suppliers), short-term loans, and any other liabilities due within 12 months.
Step 3 — Read the Result
Instantly see your total current assets, total current liabilities, working capital, and current ratio with a liquidity health indicator.
Who Uses a Working Capital Calculator?
Business Owners
Monitor liquidity health and ensure there is enough working capital to pay suppliers and employees on time.
Finance Managers
Prepare working capital reports and current ratio analysis for management review.
Loan Officers & Bankers
Assess a borrower's short-term liquidity before approving working capital loans.
Investors & Analysts
Evaluate a company's operational efficiency and short-term financial health.
Frequently Asked Questions
What is working capital?
Working capital is the difference between a company's current assets and current liabilities. It measures a business's ability to meet short-term obligations using its short-term assets.
What is the working capital formula?
Working Capital = Total Current Assets − Total Current Liabilities. A positive result means the business can cover short-term debts; a negative result signals potential liquidity issues.
What is the current ratio?
Current Ratio = Total Current Assets / Total Current Liabilities. A ratio above 2 is generally considered healthy; between 1 and 2 is acceptable; below 1 may indicate cash flow problems.
What are current assets?
Current assets are assets expected to be converted to cash within one year: cash & bank balances, accounts receivable, inventory, prepaid expenses, and short-term investments.
Is this calculator free?
Yes, 100% free. No login, no subscription, no limits.