Working Capital Calculator
Project your business cash flow and calculate the cost of working capital. Compare Cash Credit, Overdraft, and Short-Term Finance.
Real-World Scenarios
Unlike a term loan, you only pay interest on the amount you actually withdraw from the ₹50L limit. Ideal for seasonal inventory.
Selling your unpaid invoices to the bank for an upfront fee. Faster than a loan but slightly more expensive in APR terms.
Professional Strategy Insights
- The Interest-Only Advantage: Most working capital facilities require only interest payment every month. The principal ₹revolves₹, keeping your business cash flow liquid.
- Financial Discipline: Never use working capital for ₹Fixed Asset₹ purchase (machinery/office). It is meant for operations only. Using short-term money for long-term assets is a classic business failure trap.
Frequently Asked Questions
What is the Drawing Power (DP)?
Lenders check your stock and debtors monthly. If your inventory drops, your available limit (DP) also drops, even if the sanction is high.
Is collateral needed for working capital?
Yes, usually stock and book debts act as primary security. For higher limits, property or fixed deposits may be needed as collateral.
Mathematical Methodology
At eCalcy, transparency is our core principle. This SIP calculator utilizes the Future Value (FV) of Annuity Due formula with monthly compounding intervals (n=12). We account for compounding frequencies (Quarterly for FD, Monthly for SIP/EMI) to ensure 99.9% accuracy compared to official bank statements.
Financial Disclaimer
Calculations provided by eCalcy are estimates for educational purposes only. They do not constitute financial advice. Fixed deposit rates and mutual fund returns are subject to market risks and bank policy changes.
Always consult a SEBI-registered advisor or certified CA before making investment decisions.
Verified Data Sources
eCalcy Editorial Team
Verified ExpertFinance Research & Editorial Board, eCalcy
Financial Technology Specialists · RBI, SEBI & IRS Verified Calculators
Reviewed: April 2026
Every formula and editorial guide on eCalcy is reviewed by the eCalcy Editorial & Research Board and cross-referenced against RBI circulars, SEBI regulations, and the Income Tax Department guidelines. eCalcy is NOT a SEBI-registered investment advisor — all tools are educational planning aids only.