Working Capital Calculator
Subtract current liabilities from current assets to get working capital and the current ratio.
- Current ratio
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What is the Working Capital Calculator?
The working capital calculator subtracts current liabilities from current assets to show how much short-term cushion a business holds. It also gives the current ratio, which compares the two and indicates whether short-term obligations are covered.
How it works
Working capital equals current assets minus current liabilities. The current ratio equals current assets divided by current liabilities. A ratio above 1 means current assets exceed current liabilities; below 1 means they fall short. What is healthy varies by industry and business model.
How to use it
- Enter total current assets such as cash, receivables and stock.
- Enter total current liabilities such as payables and short-term dues.
- Read working capital and the current ratio.
Working Capital Calculator — FAQ
What counts as a current asset?
Cash, bank balances, receivables, stock and other items expected to turn into cash within a year.
Is a negative result always bad?
Not always, but it means short-term dues exceed short-term assets. Some businesses that collect cash early run lean working capital by design.
What if current liabilities are zero?
The ratio is shown as zero because dividing by zero is undefined; working capital still shows correctly.