How the Working Capital Calculator works
Amazon pays out every two weeks, suppliers want deposits up front, and inventory sits for months. Working capital is the cash that bridges those gaps.
Formula
- Required = Inventory + (Ads + Operating costs) × Months of runway + Receivables − Payables
- Available = Cash + Receivables + Inventory − Payables
Example
Needs about $18,400; has $16,500, so a small shortfall.
Inventory value (landed): 12000Cash on hand: 5000Amazon balance not yet paid out: 2500Supplier balances you owe: 3000Monthly ad spend: 1500Monthly operating costs: 800Months of runway to hold: 3
Frequently asked questions
How many months of runway?
Three is typical; six if you rely on sea freight or sell seasonally.