Working Capital Calculator

Subtract current liabilities from current assets to get the working capital funding day-to-day trading.

About Working Capital Calculator

The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the balance sheet up from its components makes clear which line is moving it, which a single headline number hides.

Formula

Working Capital

Working Capital = Current assets − Current liabilities

Current assets: Component of the balance sheet
Current liabilities: Component of the balance sheet

Worked example

With the default values below, Working Capital Calculator returns Working Capital of 140,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current assets: 420,000
Current liabilities: 280,000

Results

Working Capital: 140,000.00
Total Positive Components: 420,000.00
Total Deductions: 280,000.00
Result as Share of Positive Components: 33.33%
Verdict: Positive — the components net to a surplus

Step by step

1Values used
2Working Capital
3Working Capital= 140,000.00
4Total Positive Components= 420,000.00
5Total Deductions= 280,000.00
6Result as Share of Positive Components= 33.33
7Verdict= Positive — the components net to a surplus

Assumptions and limits

The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Working Capital calculated?

Working Capital = Current assets − Current liabilities The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.

Why does Working Capital matter?

Working the balance sheet up from its components makes clear which line is moving it, which a single headline number hides.

What values do I need to enter?

This calculator takes 2 inputs: Current assets, Current liabilities. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.