# Working-capital gap calculator

Estimate your cash conversion cycle and how much working capital your trade ties up at any one time. A free planning tool — no data leaves your browser.

From Creditcorp, the growing name for the Credicorp group.

## Inputs

- **Receivables days** — average days between invoicing a customer and receiving payment.
- **Inventory days** — average days stock sits before it is sold.
- **Payables days** — average days between receiving a supplier invoice and paying it.
- **Monthly revenue** — your average monthly turnover.

## How the calculation works

The cash conversion cycle (CCC) measures how long cash is tied up between paying for inputs and receiving payment from customers.

Formula:

```
CCC (days)           = receivables_days + inventory_days − payables_days
working_capital_gap  = (monthly_revenue / 30) × CCC
```

A longer CCC means more cash is tied up in the business cycle. A positive gap suggests a potential working-capital need.

## Example

A company with:
- Receivables: 45 days
- Inventory: 20 days
- Payables: 30 days
- Monthly revenue: £50,000

CCC = 45 + 20 − 30 = 35 days
Gap = (£50,000 / 30) × 35 = **£58,333**

This is a planning figure, not a guaranteed borrowing amount. Actual needs depend on many factors.

## Links

- [The cash-flow gap explained](/learn/cashflow-gap-explained/)
- [Is short-term borrowing right for you?](/learn/is-short-term-borrowing-right-for-you/)
- [Apply for working capital at credicorp.co.uk](https://credicorp.co.uk/apply/)