Electrical
Electrical Cash Flow Calculator
Estimate the funding tied up while electrical customers pay later than the business pays its costs.
Result
Profit and cash are different things and a growing contractor can run out of cash while profitable, because the work is paid for before the invoice is. This models collection speed, not seasonality.
Get a Free Business AuditWhat moves the number
- Actual collection days matter more than the terms printed on an invoice.
- Monthly invoicing sets the scale of receivables being funded.
- Cash already available and outgoing costs determine the modeled cover.
Where this one goes wrong
Large equipment purchases, retention and disputed variations can produce gaps that a steady monthly average misses. Build a dated cash schedule for significant projects before relying on the calculator's simplified buffer.
Questions
About this calculator
Why enter both payment terms and actual days?
They distinguish the intended collection arrangement from observed customer behavior. The difference helps identify whether the gap is contractual or caused by overdue payment.
Will profitable growth always improve the cash position?
No. More work can increase materials and wages paid before collection. Test the working-capital requirement before accepting several overlapping installations.
What can shorten the modeled gap?
Compare clear billing milestones, prompt invoicing and collection performance using arrangements agreed with customers. The tool quantifies timing; it does not guarantee that invoices will be paid.
The formula
cash tied up = daily invoicing x days to get paid
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How to use this calculator
- Invoiced per month ($). Enter your own figure; the page starts at $34,500.
- Payment terms (days). Enter your own figure; the page starts at 30.
- Days customers actually take. Enter your own figure; the page starts at 46.
- Costs paid out per month ($). Enter your own figure; the page starts at $38,000.
- Cash in the bank now ($). Enter your own figure; the page starts at $22,000.
The result updates as you type, so you can try a figure, see what it does to days of funding gap, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Invoiced per month | $34,500 |
| Payment terms (days) | 30 |
| Days customers actually take | 46 |
| Costs paid out per month | $38,000 |
| Cash in the bank now | $22,000 |
What comes out
| Result | Value |
|---|---|
| Days of funding gap main result | 16 |
| Cash tied up in invoices | $52,900 |
| Monthly surplus | -$3,500 |
| Months of cover | 6.3 |
There is $52,900 sitting in unpaid invoices, and customers take 16 days longer than your terms allow. That gap is the money you are lending them for free.
How sensitive the answer is
Holding everything else steady and changing only invoiced per month, this is what happens to days of funding gap. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Invoiced per month ($) | Days of funding gap |
|---|---|
| $17,250 | 16 |
| $25,875 | 16 |
| $34,500 example above | 16 |
| $51,750 | 16 |
| $69,000 | 16 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Invoiced per month ($)
- A money amount, starting at $34,500.
- Payment terms (days)
- A number, between 0 and 180, starting at 30.
- Days customers actually take
- A number, between 0 and 365, starting at 46.
- Costs paid out per month ($)
- A money amount, starting at $38,000.
- Cash in the bank now ($)
- A money amount, starting at $22,000.
What the results tell you
| Result | What it is |
|---|---|
| Days of funding gap | The headline result. A number. |
| Cash tied up in invoices | A money figure. |
| Monthly surplus | A money figure. |
| Months of cover | A decimal figure. |
Before you rely on this number
Conductor sizing, voltage drop and load figures are governed by code, and the code takes precedence over any calculator. Ambient temperature, conduit fill, continuous load factors and the specific installation all change the answer. Treat this as a first pass, not a design.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.