Idle Cash Calculator
What is idle cash costing the business?
Cash above what the business needs to operate loses ground to inflation every year. See the cost in dollars.
Inputs
Payroll, working capital, and a cushion your CPA is comfortable with.
A hypothetical rate for comparison.
Results
Excess cash above your reserve
$3,500,000
Lost to inflation each year
$87,500
2.50% real yield gap
Gap to the comparison yield each year
$227,500
Purchasing power lost over 5 years
$404,632
Compounded gap over 5 years
$1,320,552
Assumptions
- Only cash above the operating reserve is treated as excess.
- Yields and inflation are held constant and compound annually. Taxes are not modeled.
- The comparison yield is an input for illustration only. It is not a recommendation, a projection, or a return any investment will achieve. Higher yields carry more risk and less liquidity.
- We help businesses think through strategy and connect them with capital. We do not provide investment advice or recommend securities.
Results are educational estimates based on the inputs and assumptions shown. They are not a commitment to lend, an offer of financing, or an offer to sell or a solicitation of an offer to buy any security. Actual terms depend on lender underwriting and approval.