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Working Capital Calculator

LAST UPDATE: September 2nd, 2018

Calculator

What is Working Capital?

Working capital is the difference between current assets and current liabilities. It is a regular number and not a ratio or percentage. It is simply current assets minus current liabilities.

A positive number or working capital would mean that the firm can easily meet a short-term financial obligation. A negative number would mean it might not be able to.

Formula

Working Capital = Current Assets – Current Liabilities

Example

A company has current assets of $10,000 and current liabilities of $5,000.

Working Capital = $10,000 – $5,000

Therefore, this company has working capital for $5,000.

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