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How many days is your cash stuck in operations?
Enter five figures from your last balance sheet and P&L, and your borrowing rate. The calculator returns your cash conversion cycle, the working capital it locks up, and what shortening it would release against your CC/OD line.
All figures in ₹ lakh. Calculations run in your browser; nothing you enter is sent anywhere.
How it is worked out
| Measure | Formula | What it tells you |
|---|---|---|
| Inventory days (DIO) | Average inventory ÷ COGS × 365 | How long material and goods sit before they are sold. |
| Receivable days (DSO) | Average receivables ÷ revenue × 365 | How long customers take to pay after invoicing. |
| Payable days (DPO) | Average payables ÷ COGS × 365 | How long you take to pay suppliers. |
| Cash conversion cycle | DIO + DSO − DPO | Days between paying for inputs and collecting from customers. |
| Cash released | ΔDSO × revenue ÷ 365 + (ΔDIO + ΔDPO) × COGS ÷ 365 | One-time cash freed by shortening the cycle. |
| Interest saved | Cash released × CC/OD rate | Annual saving if the freed cash reduces your CC/OD balance. |
A 365-day year is used. Averages are more reliable than year-end balances because year-end stock and debtors are often managed for the balance sheet. If your business is seasonal, run the calculator on monthly averages instead.
Reading the result
The cycle is a count of days your own money, or the bank's, is funding operations. A longer cycle is not wrong in itself. A business that builds inventory ahead of a season, or sells to large buyers on agreed credit, will carry a longer cycle by design. What matters is whether the cycle is moving, and whether it is funded by a CC/OD line that is priced and sized for it.
Look at the three components separately. A rising DSO usually points to collection discipline or customer concentration. A rising DIO usually points to slow-moving finished goods or buying raw material ahead of need. Each has a different fix and a different owner in the business.
A caution on stretching supplier payments
Paying later is the easiest lever on paper and the riskiest in practice. For suppliers registered as micro or small enterprises, Section 15 of the MSMED Act, 2006 requires payment within the agreed period, which cannot exceed 45 days, or within 15 days where there is no written agreement. Delay attracts compound interest under Section 16 of that Act. On the tax side, amounts owed to such suppliers and still unpaid beyond that period at the year-end are allowed as a deduction only in the year of payment, under Section 43B(h) of the Income-tax Act, 1961, carried into Section 37(2)(g) of the Income-tax Act, 2025 from 1 April 2026. Medium enterprises are outside this provision. Check each supplier's Udyam classification before relying on this lever.
Sources and references
- Micro, Small and Medium Enterprises Development Act, 2006, Sections 15 and 16 (payment period and interest on delayed payment).
- Income-tax Act, 1961, Section 43B(h), inserted by the Finance Act, 2023 with effect from 1 April 2024; corresponding provision Section 37(2)(g), Income-tax Act, 2025. Verify against the bare Act.
- DIO, DSO, DPO and cash conversion cycle are standard working capital measures; the formulas above use COGS as the base for inventory and payables and revenue for receivables.
Other free tools
- Monthly cash flow modelA 12-month, April–March view of cash in and out
- Overdraft cost calculatorThe all-in cost of your CC/OD line, not just the rate
- GST reconciliation checklistMonthly GSTR-2B and IMS close, with an ITC-at-risk estimate
- CMA data templateThe ratios and MPBF your bank will compute from your CMA
Want these numbers read against your own books?
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