Working Capital Gap Calculator
Money gets stuck in unpaid invoices and stock before suppliers have to be paid. See how much cash your business cycle ties up, and the cash credit or overdraft limit a bank may consider.
Your business
Your GST turnover for the last year, or what you expect this year.
Raw material or goods bought for resale. A trader is often 80–90%, a manufacturer 60–75%.
Cash credit or overdraft sanctioned today. Leave 0 if none.
Your cash cycle is 75 days: money goes out to suppliers and comes back from customers 75 days later.
- Money owed by customers
- ₹49,31,507
- Stock on hand
- ₹27,73,973
- Less: owed to suppliers
- −₹18,49,315
- Bank finance at 75% of the gap
- ₹43,92,123
- Turnover method (20% of sales)
- ₹60,00,000
- Limit a bank may consider
- ₹60,00,000
How banks size a working capital limit
Banks look at the same cycle this calculator shows: money locked in stock and unpaid invoices, less what suppliers let you owe. They usually fund about three quarters of that gap and expect the business to bring the rest. For micro and small enterprises with limits up to ₹5 crore, RBI guidance asks banks to assess the need at no less than 20% of projected annual turnover, which is why both figures appear above.
Ways to shrink the gap
- Collect faster: shorter credit terms, or discount invoices raised to large companies and PSUs on a TReDS platform.
- Hold less stock: reorder more often in smaller lots for slow-moving items.
- Ask suppliers for longer terms, especially those you buy from regularly.
Read more about cash credit, overdraft and WCDL, or work out a term loan EMI with the EMI calculator.
This is an estimate for planning only, not a loan offer. Each lender assesses working capital using your financial statements, GST returns, bank statements and projections, and its own policy. BizzBuddy is a loan facilitation and advisory platform, not a lender; every credit decision is made by the lender.