Working Capital Calculator — Business Liquidity
Free working capital calculator. Measure your business liquidity by comparing current assets to current liabilities.
Formula: Working Capital = Current Assets - Current Liabilities
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What Is This Calculator?
Working capital measures a company's short-term financial health and operational efficiency. It represents the difference between current assets (cash, receivables, inventory) and current liabilities (payables, short-term debt, accrued expenses). Positive working capital means a company can cover its short-term obligations.
How to Calculate
Add up all current assets (cash, accounts receivable, inventory, prepaid expenses). Subtract total current liabilities (accounts payable, short-term loans, accrued wages, taxes payable). The result is your net working capital. The current ratio (assets/liabilities) shows the same relationship as a ratio.
Examples
A business has $150,000 in current assets and $90,000 in current liabilities. Working capital = $60,000. Current ratio = 1.67. A ratio above 1.0 means assets exceed liabilities. Generally, 1.5-2.0 is considered healthy.
Recommended Tools
QuickBooks and Xero automatically calculate working capital from your balance sheet, making it easy to monitor liquidity trends over time.
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