SMB Tools / Self-Fundable Growth Calculator
How fast can you afford to grow?
Growth consumes cash before it produces it - every new sale ties up money in receivables and inventory first. This tool shows the growth rate your own cash flow can fund, and how much outside cash a faster target would need.
Your business
Annual revenue
$
Net profit margin
%
Owner draw per year
$
Your cash cycle
Receivable days (DSO)
days
Inventory days (DIO)
days
Payable days (DPO)
days
COGS percent of revenue
%
Cash per new $1 of revenue12.3c trapped
Your plan
Target growth rate
%
Growth capex per new revenue dollar
$
Self-fundable growth rate
32.4%
Your cash can fund about 32.4% growth a year. Your 60% target needs $33,973 a year of outside cash on top of what the business throws off - line it up before you push.
- Cash per $1 growth
- 12.3c trapped
- Retained cash / yr
- $40,000
- Outside cash at 60%
- $33,973
Retained cash / yr$40,000
Cash your 60% growth needs-$73,973
Surplus after growth-$33,973
Growth consumes cash before it produces it. This is the rate your own cash covers; beyond it you need financing lined up before you grow, not after. Based on the self-financeable growth framework (Churchill and Mullins, HBR 2001), simplified to annual figures.
A planning estimate, not financing advice. Model the real numbers with your accountant. Map the months in the cash flow forecaster →