Working capital requirement
How much cash is tied up in stock and customer and supplier payment terms.
How it works
WCR = receivables + stock − payables, each from days: revenue × customer days / 365 + purchases × stock days / 365 − purchases × supplier days / 365.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Yearly revenue600000
- Yearly purchases280000
- Customer payment terms (days)45
- Supplier payment terms (days)30
- Average stock (days of purchases)40
you get:
- Working capital need€81,643.84
- In days of revenue50 days
- Receivables€73,972.60
- Inventory€30,684.93
Frequently asked questions
How does the “Working capital requirement” tool work?
WCR = receivables + stock − payables, each from days: revenue × customer days / 365 + purchases × stock days / 365 − purchases × supplier days / 365.
What do I need to enter?
Just fill in: yearly revenue, yearly purchases, customer payment terms, supplier payment terms, average stock. The result updates as you type.
Can you give an example?
Yearly revenue: 600000; Yearly purchases: 280000; Customer payment terms (days): 45; Supplier payment terms (days): 30; Average stock (days of purchases): 40 → Working capital need: €81,643.84; In days of revenue: 50 days.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.