CALCULATORS
Working capital limit calculator
Banks size OD/CC limits with drawing power from stock and debtors after margins, minus creditors; smaller tickets often use the Nayak turnover method (about 20% bank finance); larger files may use MPBF Method II. This calculator runs all three side by side, shows an indicative range, and names what is capping you - stock, debtors, creditors or turnover.
Rates verified as of 1 Sep 2026
Your numbers
What you hold
What you owe
Your sales
Bank margins and debtor age
Your result
Indicative working-capital limit
₹74L–₹1.2Cr
Likely method at this turnover: Drawing power with turnover cross-check.
Held back by your stock. Stock after margin is the main driver of drawing power. Cleaner stock statements and lower obsolete inventory help; a lower stock margin (if the bank agrees) also lifts DP.
- Working-capital cycle
- 103 days
- WC need (25% of turnover)
- ₹1.5Cr
- Your margin (turnover method)
- ₹30L
- Eligible debtors
- ₹90L
Margin is the share the bank expects you to fund yourself. Drawing power is what you can actually draw against a stock statement, often below the sanctioned OD/CC limit. Nayak ratios are bank practice, not a hard rule for every loan.
ASSUMPTIONS
What we assume.
Open assumptions
- All math runs in your browser. Nothing here is a sanction or offer.
- Statutory rates and windows come from a single config file last verified on 1 Sep 2026.
- Bank and NBFC grids vary by geography, segment and internal policy.
- Kredway is a lending service provider / DSA intermediary and does not lend. Calculator outputs are indicative estimates, not offers. Actual eligibility, rate and terms are determined by RBI-registered banks and NBFCs at their sole discretion.
FAQ
Common questions.
Why is my sanctioned limit higher than drawing power?
Sanction is the outer limit. Drawing power from the latest stock statement usually caps what you can actually draw. If DP falls, available drawdown falls even if sanction is unchanged.
What is a stock statement?
A periodic statement of inventory and receivables (and sometimes creditors) your bank uses to recompute drawing power - often monthly for OD/CC.
How often do banks check?
Many WC facilities need monthly stock statements; some need quarterly CMA updates. Missed statements can freeze or cut DP.
What if DP falls below outstanding?
You may face irregular account treatment, a request to lodge funds, or restricted fresh drawals until DP recovers or the limit is regularised.
REFERENCES
Primary sources.
GUIDES
Read more on this.
RELATED
Other calculators.
Kredway is a lending service provider / DSA intermediary and does not lend. Calculator outputs are indicative estimates, not offers. Actual eligibility, rate and terms are determined by RBI-registered banks and NBFCs at their sole discretion.