Free hotel calculator
Hotel Working Capital Calculator
Find how much cash your hotel needs to run day to day, based on OTA and corporate receivables, supplier credit and stock.
How to use the free Hotel Working Capital Calculator
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This Hotel Working Capital Calculator runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free hotel working capital calculator. Enter monthly revenue, costs, OTA and corporate receivable days, payable and stock days to get your cash need.
Why profitable hotels still run short of cash
A hotel can show a profit on paper and still struggle to pay salaries on the first of the month. The reason is timing. OTAs that collect payment from guests pay you after checkout, often in weekly or monthly cycles. Corporate clients and travel agents may take 30 to 60 days. Meanwhile, you pay staff, vegetable vendors and the electricity board on time. The gap between money going out and money coming in is your working capital need.
Stock = Monthly purchases × Days of stock ÷ 30
Payables = Monthly credit purchases × Supplier credit days ÷ 30
Working capital = Receivables + Stock − Payables + Cash buffer
What each input means
- Share paid later: revenue not received at checkout, such as OTA-collect bookings, bill-to-company stays, travel agent vouchers and event balances.
- Days to collect: the average time from checkout to money in your bank account.
- Supplier credit: days your regular suppliers allow before payment. This reduces how much cash you need.
- Days of stock: food, beverages, amenities and cleaning materials sitting in your stores.
- Cash buffer: a few days of costs kept aside for salaries, repairs and slow weeks.
How to reduce the need
- Reconcile OTA payouts every week and chase missing amounts quickly. Know what each channel really costs with the OTA commission calculator.
- Take advance payments for groups, weddings and long stays.
- Set credit limits and fixed billing dates for corporate clients, and send invoices on the day of checkout. The hotel invoice generator helps you issue them quickly.
- Agree 30-day terms with regular suppliers and pay on time to keep that credit.
- Order perishables more often in smaller lots and set par levels for dry stores.
- Move more guests to direct bookings paid at the time of booking.
Review the figure before every peak season. Higher occupancy means more purchases and more receivables, so the need rises just when you are busiest.
Frequently asked questions
What is working capital for a hotel?
It is the cash tied up in day-to-day operations: money owed by OTAs, companies and agents, plus stock in stores, minus credit your suppliers give you, plus a small safety buffer.
What is the cash conversion cycle?
It is the number of days between paying for supplies and receiving money from guests or channels. Days to collect plus days of stock minus supplier credit days.
How can a hotel reduce its working capital need?
Collect OTA and corporate dues faster, take advances for groups and events, hold less stock and agree longer credit terms with regular suppliers.
Want a revenue expert to check your numbers?
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