Cash flow gap calculator
Map six months of money in and money out, find your low point, and see how much working capital would carry you through.
The short answer
Enter your opening bank balance and expected money in and out for the next six months, including GST, PAYE and tax. The calculator finds the lowest point your balance reaches and adds a safety buffer. That figure is a sensible starting point for the size of a cash flow or working capital loan.
Reading your result
The low point is the month your balance bottoms out. Borrowing enough to stay above your buffer at that point means you can pay staff, suppliers and IRD on time while you wait for customers to pay. If your balance recovers by month six, a short-term cash flow loan can be repaid from that recovery.
If the balance keeps falling month after month, borrowing alone won't fix it. Look at pricing, payment terms and costs too. Our guide to fixing cash flow problems covers the levers, and seasonal cash flow explains how farming, tourism and retail businesses plan for the quiet months.
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Frequently asked questions
What is a cash flow gap?
A cash flow gap is the stretch of time when money going out of the business is more than money coming in, so the bank balance falls below what you need to keep trading. It often happens even in profitable businesses, because customers pay later than suppliers, staff and IRD need paying.
How much working capital should I borrow?
Enough to cover the deepest point of the gap plus a buffer for surprises, and no more. This calculator finds the lowest point in your next six months and adds the buffer you choose, which is a sensible starting figure for a cash flow loan.
What kind of loan fixes a cash flow gap?
Short-term unsecured or cash flow loans are built for this, because they are assessed on your trading and can be paid back as the money comes in. If the gap is large or recurring, a line of credit or a property-backed loan may be cheaper.
Should I include GST and tax payments?
Yes. GST, PAYE and provisional tax are some of the biggest outgoings for many businesses and often cause the gap. Include them in the month they are due.
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