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How long is inventory spending tied up before payout? Turn that delay into an amount.
Calculator inputs are not uploaded or saved to an account. Reports are prepared locally for download to your device.
Understand the number before the decision
Cash cycle equals supplier lead time plus inventory holding days plus payout delay minus supplier credit. Estimated tied-up inventory cost is daily COGS multiplied by the greater of zero and that cycle. This is a steady-state average model, not a complete cash-flow forecast.
Daily COGS of 200, lead time 10 days, stock holding 20 days, payout delay 7 days and supplier terms 15 days yield a 22-day cycle and 4,400 tied up. Reducing payout delay from 7 to 2 days lowers the estimate to 3,400 if every other assumption stays unchanged.
The estimate covers inventory cost only. It excludes prepaid advertising, shipping, taxes, processor reserves and seasonality. A negative cycle is shown as entered, but tied-up cost is floored at zero; this does not mean your entire cash requirement is zero.
Refusal calculations use dispatched orders; refund calculations use paid orders. Inventory and fee recovery values are your own assumptions. Cash-cycle estimates cover inventory cost only under steady activity. The explanations above identify formulas and exclusions. Currency is a label without conversion; unentered fixed costs and taxes are excluded.
