CALCULATOR
Working capital need
Four numbers in, one number out: how much cash your operations need just to keep running, and how much more each €100,000 of new revenue will demand up front.
Your numbers
Annual sales. Use the last 12-month total.
Average number of days between invoice date and the moment money lands on your account.
Average number of days between receiving a supplier invoice and paying it. The longer, the less working capital you need.
Average number of days a unit sits in stock before being sold. Service business with no stock? Enter 0.
BE 21 / FR 20 / NL 21. Applied to receivables and payables (gross). Inventory stays at cost.
Inventory is valued at cost: cost = revenue × (1 − margin). Default 40%. Adjust for your sector.
Your result
Working capital your operations need
€157,808.22
This is cash that must stay tied up to keep operations running. Growth makes this number grow with you.
Cash cycle
50 days
Customer days + Stock days − Supplier days
Per €100k of new revenue
€13,150.68
extra cash you must find up front
What this means for you
- ·At a typical bank financing cost of around 5% per year, this working capital silently costs you €7,890.41 in interest each year.
- ·Getting your customers to pay 10 days earlier would free €39,452.05 in cash, permanently.
- ·Negotiating longer payment terms with one or two key suppliers can free as much cash, without selling more.
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.
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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.