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//// Financial · Liquidity

Working Capital Calculator

Enter current assets, liabilities, and monthly expenses to see your working capital, current ratio, and cash runway in seconds.

Where this fits

💸 Budgeting & Cash FlowGoing 1099Cash FlowFreelancersFounders

This tool lives inside Going 1099 + Cash Flow and is most useful for freelancers and founders.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Assets & Liabilities

Working Capital
$20,500
Current Assets − Current Liabilities
Healthy
Current Ratio
2.78×

Liquidity Gauge

At Risk <1.0×2.78×Healthy >2.0×
0×1.0×2.0×3.0×+
Cash Runway
4.6 mo
At current burn rate
Burn Rate
$4,500
Monthly expenses
1

Working Capital

WC = Current Assets − Current Liabilities

$32,000 − $11,500

= $20,500

2

Current Ratio

Ratio = Current Assets ÷ Current Liabilities

$32,000 ÷ $11,500

= 2.78×

Above 2.0 = Healthy. 1.0–2.0 = Adequate. Below 1.0 = At Risk.

3

Burn Rate

Burn Rate = Monthly Expenses

$4,500/mo

= $4,500/month

4

Cash Runway

Runway = Working Capital ÷ Monthly Expenses

$20,500 ÷ $4,500

= 4.6 months

How long you can operate at current burn if no new revenue comes in.

Key insight

Your 2.78× ratio gives you 4.6 months of runway — a strong cushion for slow payments or gaps between contracts.

Use this result in →

Cash Flow Forecast →Quarterly Taxes →Financial Snapshot →

#ShowYourWork

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