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Working capital calculator: MPBF, turnover and cash budget

Compare the Tandon MPBF methods, a turnover-based limit and the peak deficit from a cash budget.

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Indicative only. Verify against your institution's policy. Nothing you type into the calculator leaves this page.

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Formulas used

Method I = 75% x (current assets - current liabilities)

Method II = (75% x current assets) - current liabilities

Method III = 75% x (current assets - core current assets) - current liabilities

Turnover limit = projected turnover x tested %

Cash budget limit = largest cumulative deficit across the months

Worked example, made-up numbers

Current assets 100, current liabilities 40, core assets 20. Method I = 45, Method II = 35, Method III = 20.

Assumptions

  • Which method applies is your institution's decision. RBI no longer mandates MPBF.
  • The turnover percentage is only a test value.
  • Results below zero show as zero.
  • Use the same unit for every amount.