Cash Target Methods
Understand three different ways to calculate your business's cash reserve targets.
Unified Financial Inputs
Enter your key financial figures to see all three cash target calculations.
Monthly Expenses
Annual & Balance Sheet Figures
Core Capital Target
$80,000
This method calculates a safety net based on two months of your total cash operating expenses (payroll + non-payroll). It's a straightforward way to ensure you can cover immediate obligations without revenue.
Financial Gap (Working Capital)
$140,000
This target is based on your cash conversion cycle—the time it takes to turn inventory and sales into cash. It represents the minimum cash required to fund one full operating cycle of your business.
Payroll Protection Target
$62,500
Based on the logic of the Paycheck Protection Program, this calculates a reserve equal to 2.5 times your monthly payroll. It prioritizes having enough cash to cover your team in a crisis.