Working capital calculator
Enter your turnover, cost of sales and payment days to see how much cash is tied up in your working capital cycle, and how much changing one lever could free up.
Cash tied up in your trading cycle
€328,767
- Owed by customers
- €328,767
- Held in stock
- €98,630
- Less: owed to suppliers
- −€98,630
- Cash conversion cycle
- 60 days
This is roughly the cash your company needs to keep trading at this size. Invoice finance, stock finance or a working capital facility can fund some or all of it.
Check eligibility for working capitalIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
The cash conversion cycle (debtor days + stock days − creditor days) shows how long each euro spent takes to come back as cash. Growing sales usually increase the working capital you need, even when the business is profitable.
Money owed by customers and money sitting in stock both tie up cash. Credit from suppliers funds part of it. The gap is your working capital need.
For illustration only: on €2m of annual turnover, getting customers to pay 15 days sooner frees up about €82,000. Test what growth does too: raising turnover with the same payment terms increases the cash you need.
Want to understand the product first? Read our guide to working capital finance.
Working capital calculator: common questions
What is the cash conversion cycle?
The number of days between paying for stock or costs and getting paid by your customers: debtor days plus stock days, minus creditor days. A 60-day cycle means each euro spent takes about 60 days to come back as cash. The longer the cycle, the more working capital your company needs.
What is working capital?
The money a business needs to run day to day: cash tied up in stock and unpaid invoices, less what it owes suppliers in the short term. A profitable company can still run short of cash if too much is tied up in stock or debtors.
How do I work out debtor days?
Divide trade debtors by annual turnover and multiply by 365. For example, €300,000 owed by customers on €2m of turnover is about 55 days. Stock days and creditor days work the same way, using cost of sales instead of turnover.
How can I reduce the working capital I need?
Invoice promptly, chase overdue payments, agree better supplier terms and hold less stock. You can also charge statutory late payment interest on overdue business invoices under Irish late payment rules. Each day cut from the cycle frees up cash, which the calculator shows.
What finance helps with working capital?
Common options include working capital and short-term business loans, stock finance, trade or supplier-payment finance and, for card-taking businesses, a merchant cash advance; our panel can help with these. Invoice finance and revolving credit facilities are also widely used.
Why do growing companies run short of cash?
Because more sales usually mean more money tied up in stock and unpaid invoices before customers pay. Growing turnover with the same payment terms increases the cash you need. Planning finance ahead of growth avoids a squeeze, and the calculator lets you test the effect of higher sales.
Check in 60 seconds
Get real figures for your company
Checking involves no credit search and is not recorded on the Central Credit Register. No obligation.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
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