Two tools in one page: the calculator for a loan payment, and the tables for working capital and the current ratio. Use invented or real figures; neither is an offer.
Working Capital Calculation Example: Numbers a Medical Practice Can Pull From Its Books
Illustration only, invented figures: a small medical practice lists its current assets and current liabilities from its balance sheet. Working capital is $114,600 minus $60,700, or $53,900. The current ratio, current assets divided by current liabilities, is 1.89.
| Line | Amount |
|---|---|
| Cash in the operating account | $41,200 |
| Insurance claims receivable | $63,800 |
| Medical supplies on hand | $9,600 |
| Current assets, total | $114,600 |
| Supplier invoices due | $14,300 |
| Payroll and taxes accrued | $27,900 |
| Loan payments due within a year | $18,500 |
| Current liabilities, total | $60,700 |
Insurance claims receivable count as current assets, which is why a practice can show healthy working capital and still be short of cash on payday. That timing gap, between a healthy balance sheet and an empty payroll account, is what a working capital loan or a line is for.
Working Capital Calculation for a Bank Loan: The Salon Figures Behind Retail Product
Illustration only, invented figures: a salon preparing a request lists retail product on the shelf as a current asset. Its working capital is $22,600 minus $16,100, or $6,500, a current ratio of 1.40.
| Line | Amount |
|---|---|
| Cash | $8,700 |
| Card deposits in transit | $2,300 |
| Retail product on the shelf | $11,600 |
| Current assets, total | $22,600 |
| Product distributor invoices | $6,900 |
| Booth-rent deposits held | $1,800 |
| Equipment payments due within a year | $7,400 |
| Current liabilities, total | $16,100 |
Take the retail product out and current assets fall to $11,000, below the $16,100 of current liabilities. A funding partner can look at how much of a salon's working capital sits in stock that still has to sell, which is why inventory financing is a separate product.
Working Capital Calculator Online: Inputs Restaurant Owners Already Have
The calculator on this page takes three inputs, the loan amount, an annual interest rate and a term in months, and returns the estimated monthly payment, the total interest and the total repaid. A restaurant owner has the amount in mind and can try rates and terms to see how the payment moves; the real rate and term come only from a funding partner's offer.
Illustration only, invented figures: type in $35,000, 24 months and 10.25%, and the widget shows $1,619.11 as the monthly figure, $3,858.73 of interest and $38,858.73 in total (the widget works from the unrounded payment; 24 rounded payments come to $38,858.64).
ZIP 05401 had 159 accommodation and food services establishments with paid staff in 2023 (ZIP Code Business Patterns), each with its own food costs to weigh against a payment like that.
Reading the Working Capital Calculator Online Result Before Food Orders
Illustration only, invented figures: a kitchen that spends $4,800 a week on food orders would set the $1,619.11 monthly payment next to them, about a third of a week of food spending (0.34 weeks). If the loan pays for food orders during a gap, the gap should close well before the term ends.
The calculator does not compute working capital, a line of credit's draws or a balloon payment; the tables above and the line of credit page handle those. For a comparison of products, see the funding options page.
Stock and receivables count toward working capital, but neither pays a supplier on its own. A kitchen whose current ratio rests mostly on what is in the walk-in has less cushion than the ratio suggests, and the same goes for the practice above. Illustration only, invented figures: take its $9,600 of supplies out of current assets and the ratio slips from 1.89 to 1.73; take out the claims receivable too and only $41,200 of cash stands against $60,700 of bills, a ratio of 0.68.
By Wrenbridge Capital · Updated