Cash Conversion Cycle Calculator
Days between paying and being paid.
Cash conversion cycle
53 days
$107,663 of funding it requires
Cash leaves 53 days before it returns, so every increase in run rate needs funding first. Cutting the cycle by ten days releases $20,384 permanently — the same effect as raising that much capital, with no interest.
How the Cash Conversion Cycle Calculator works
Cash leaves before it returns, and the gap has to be funded. Cutting the cycle by ten days releases the same cash as raising that much capital, with no interest and no dilution — which is why it is the most valuable finance work most small businesses never do.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the cash conversion cycle?
Days inventory outstanding plus days sales outstanding minus days payable outstanding. It measures how long cash is tied up between paying suppliers and being paid by customers.
Can it be negative?
Yes, and it is the strongest cash position available — customers pay before you pay suppliers, so growth funds itself. Large retailers and subscription businesses often operate this way.
Which lever moves it most?
Usually inventory days, because it is the largest term for most product businesses and the most under your control. Supplier terms are next.
How much is a day worth?
Daily cost of goods sold. Cutting ten days releases ten times that permanently, which is why the exercise repays the effort of measuring it.