CALCULATOR
Cash trap estimator
Three numbers in, one number out: how much of your cash is silently locked in unpaid invoices and stock instead of sitting in your bank account.
Your numbers
Total sales over the last 12 months, before VAT.
Look at your last 10 invoices: how many days passed on average between invoice date and payment?
Average number of days a unit sits in stock before being sold. Service business with no stock? Enter 0.
Standard VAT rate you charge on invoices. Belgium 21%, France 20%, the Netherlands 21%. Receivables on the balance sheet sit at gross (VAT included).
Used to value stock at cost (cost = revenue × (1 − margin)). 40% is a typical SME blended margin; lower for distribution, higher for software/services.
Your result
Cash locked outside your bank account
€325,479.45
That is roughly 27% of your annual revenue, sitting outside your bank account.
Receivables
€236,712.33
what customers owe you
Stock locked
€88,767.12
valued at estimated cost
What this means for you
- ·Stock that doesn't turn is sleeping cash. Identify the slow-moving items and decide what to do with them.
- ·At a typical bank financing cost of around 5% per year, this trapped cash silently costs you €16,273.97 in interest.
- ·Collecting your invoices one week earlier would free €27,616.44, without a single extra sale.
Receivables include VAT. We use 20% as a working proxy across Belgium (21%), France (20%), the Netherlands (21%) and most neighbouring markets. The figure shifts only marginally if your actual standard rate differs by a point or two.
Stock is approximated at cost rather than sale price: we apply the gross margin you entered to your revenue, so the cost base used here equals (1 − margin) × sales spread across the stock days entered. Adjust the margin field if your sector differs.
Reference rate: ~5% per year (2024), based on the ECB's published interest rate on new bank loans to euro-area small and mid-sized companies (loans up to €1M). Your actual cost of financing may differ materially depending on your bank, sector and credit profile.
Not sure how to read these results?
Send us a quick email. We'll help you make sense of the numbers.
For information only. This calculator is for educational purposes only. Results are estimates based on the inputs you provide and do not constitute financial, accounting, tax, or legal advice. For decisions that affect your business, consult your accountant or a qualified advisor.