Contractor Working Capital Calculator

How the working capital calculator works

The number above is your working capital gap — the cash you have tied up in a job before the client pays you back. It comes from three things:

• Upfront / mobilization — what you spend to get started (deposits, first materials, crew deployment) before any payment.
• Payment-terms gap — because clients pay net-30 to net-90, you're always carrying roughly one to three months of costs you haven't been paid for yet.
• Retainage — the 5–10% held back until the job is complete is money you've earned but won't see until the end.

Why profitable contractors still run short on cash

A job can be profitable on paper and still drain your bank account, because costs go out before money comes in. You pay payroll every week and buy materials upfront, but a commercial client on net-60 terms won't pay for two months — and may hold retainage even longer. That timing mismatch, not profitability, is what creates the squeeze.

What to do about the gap

If the gap shows up on a single large job, a working capital advance or term loan can cover it. If it happens on every job or seasonally, a line of credit is usually a better fit because you draw and repay as cash moves. When the gap is specifically unpaid invoices, accounts receivable financing turns those invoices into cash now.

This calculator provides estimates for educational purposes only and is not financial advice or a financing offer. Actual cash needs vary with draw schedules, milestone timing, and your specific contract terms.