Working Capital Calculator
Calculate working capital, current ratio, and quick ratio to assess business liquidity.
By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide
Working Capital
$200,000.00
Current Ratio
1.67
Quick Ratio
0.83
Working Capital Analysis
| Current Assets | $500,000.00 |
| Current Liabilities | - $300,000.00 |
| Net Working Capital | $200,000.00 |
| Current Ratio | 1.67x |
| Quick Ratio | 0.83x |
| Liquidity Rating | Healthy |
Ratio Benchmarks
Current ratio: 1.5-2.0 is healthy | Quick ratio: 1.0+ is strong | NWC: 10-20% of revenue is typical
Use the Working Capital Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Three liquidity measures sit at the center of short-term financial health: working capital, the current ratio, and the quick ratio. Each one speaks to whether a business can cover the obligations coming due in the near term. Keeping liquidity in a comfortable range carries real weight for day-to-day operations and for any plans to grow.
Working capital is simply Current Assets minus Current Liabilities, showing the funds on hand to settle short-term debts. The current ratio divides Current Assets by Current Liabilities for a wider read on liquidity; the calculator rates 2.0 or more as strong, 1.5 to 2.0 as healthy, 1.0 to 1.5 as adequate and below 1.0 as at risk. The quick ratio, also called the acid-test ratio, divides quick assets (cash, marketable securities and receivables, which you enter separately) by Current Liabilities, giving a stricter view by leaving out slower-moving assets such as inventory.
Interpretation matters as much as the math. Benchmarks swing widely by sector, so a ratio that looks strong for a retailer may read very differently for a software firm. Leaning on a single ratio, or ignoring qualitative signals like projected cash flow, tends to mislead. Revisiting these figures on a regular cadence, quarterly works well, helps you respond as market conditions and strategy shift.
Example: Evaluating 'InnovateTech Solutions' in Q1 2026
- 1 InnovateTech Solutions reports Current Assets of $1,200,000, of which $300,000 is inventory and $900,000 is cash, securities and receivables, and Current Liabilities of $600,000 at the end of Q1 2026.
- 2 Working Capital = $1,200,000 − $600,000 = $600,000. Current Ratio = $1,200,000 / $600,000 = 2.0. Quick Ratio = $900,000 (quick assets) / $600,000 = 1.5.
- 3 InnovateTech Solutions has Working Capital of $600,000, a Current Ratio of 2.00, which the calculator rates Strong, and a Quick Ratio of 1.50.
- 4 Current assets cover current liabilities twice over, and cash, securities and receivables alone cover them 1.5 times, so the company could meet its short-term bills without selling inventory. Adding annual revenue makes the calculator show working capital as a share of sales as well.
Source: SBA — Business Guide · Last updated: September 2026
Frequently Asked Questions
What is working capital?
How much working capital does a business need?
What is the difference between working capital and cash flow?
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