Working Capital Calculator
Estimate Your Working Capital Need
Enter your monthly revenue, expenses, and desired coverage period.
Enter revenue, expenses, and coverage months, then click “Calculate Working Capital” to see your results.
Results are estimates based on the inputs provided and standard assumptions. They do not represent a loan offer, approval, rate commitment, or lender decision. Actual terms are determined by lenders based on full underwriting review.
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Common Questions
Working Capital — Frequently Asked Questions
What is working capital?
Working capital is the difference between a business's current assets and current liabilities. It measures short-term liquidity — whether the business has enough resources to cover its near-term obligations.
What is a good working capital ratio?
A ratio between 1.5 and 2.0 is generally considered healthy. Below 1.0 means current liabilities exceed current assets, which signals short-term liquidity risk. Above 2.0 may indicate underutilized assets.
What is the quick ratio?
The quick ratio excludes inventory from current assets, measuring only the most liquid assets — cash, receivables, and short-term investments — against current liabilities. It is a stricter liquidity test than the working capital ratio.
How is line of credit sizing calculated?
Line of credit sizing is typically based on a percentage of accounts receivable and inventory. Lenders commonly advance 70–85% against eligible receivables and 25–50% against inventory, depending on industry and asset quality.
Can this calculator help me apply for a line of credit?
This calculator provides planning estimates only. It does not constitute a financing offer or approval. Contact SGF to discuss your actual line of credit options based on your full financial profile.
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