Working Capital Calculator

Enter the highlighted values, the others are calculated for you.
Annual revenue

200,000

Gross margin %

60%

Overhead %

25%

Days credit given to customers

60

Inventory days

60

Days credit given by inventory suppliers

30

Days credit given by overhead suppliers

30

Working Capital Requirements

Accounts receivable

32,877

Inventory

13,151

Accounts payable for inventory

-6,575

Accounts payable for overheads

-4,110

Cash needed to fund working capital

35,342

Percentage to apply to revenue

www.double-entry-bookkeeping.com

17.7%

Notes
Gross profit / Revenue
Overhead / Revenue

Credit given to customers

Invested in inventory
Credit given by inventory suppliers
Credit given by overhead suppliers

Muliply annual revenue by this percentage for

quick calculation of working capital
requirements. Review the % periodically as
the business changes.

www.double-entry-bookkeeping.com

Notes and major health warnings

Users use this template at their own risk. We make no warranty or representation as to its accuracy
and we are covered by the terms of our legal disclaimer, which you are deemed to have read.

This is an example. It is purely illustrative. This is not intended to reflect general standards or
targets for any particular company or sector.

If you do spot a mistake in the template, please let us know and we will try to fix it.