CALCULATOR
Max organic growth rate
Two angles on the same question: how fast can you grow next year using only the cash your business already generates, without raising debt or new equity.
Your numbers
Net profit divided by revenue. Find both at the bottom of your income statement.
Revenue divided by total assets. Total assets are visible on the balance sheet.
Equity divided by total assets. Both visible on the balance sheet.
Share of last year's net profit paid out to owners. Most SMEs reinvest everything: enter 0.
For every €100 of extra revenue, how many euros stay locked in unpaid invoices and stock, minus what suppliers finance for you. If unsure, leave the default.
What you typically reinvest each year in equipment, tools, software or fit-out, as a share of revenue. Service businesses sit low; capital-heavy ones sit higher.
Your result
Your real growth ceiling, next 12 months
42.9%
The lower of the two ceilings is the one that bites. Grow faster and you will need new debt or equity.
Equity-funded ceiling
42.9%
what your balance sheet can absorb
Cash-funded ceiling
44.4%
what your operating cash cycle can absorb
Both constraints align. Growth above this rate needs external financing of some kind.
Return on equity (ROE)
30.0%
what each euro of equity earns
Profit retained
100%
share kept inside the business
What this means for you
- ·Beyond this ceiling, you must either raise capital, take on debt, or accept a temporary cash squeeze.
- ·Improving margin lifts both ceilings. Shortening your cash cycle lifts them further.
- ·Planning to grow well above your binding ceiling? Start the financing conversation 3 to 6 months before you actually need the cash.
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.