Calculate your result
Use figures from the same period and currency. Avoid mixing estimates with verified amounts without noting the difference.
Privacy: This calculation runs in your browser. The figures you enter are not submitted to our server.
Why this matters
Payroll failure damages staff trust, operations and sometimes legal compliance faster than many other cash problems. Coverage should be measured before payday, not discovered when transfers fail. This calculator focuses management on whether cash available plus receipts due before payroll can cover the full payroll obligation. The answer is useful because it turns a general cash concern into a quantified decision with a time window, owner and next step.
Use cash specifically available for payroll, confirmed receipts with dates earlier than payday, the gross payroll due and any payroll taxes or mandatory deductions paid separately. Keep every figure in the same currency and planning period. Separate confirmed cash from hoped-for sales, and label estimates so they are not mistaken for verified balances. Cash-flow guidance should be read as an operating forecast, not a statement of profit. The central discipline is timing: cash must be available before an obligation becomes due.
How to act on the result
- Verify that confirmed receipts are collectible before payday and are not already committed elsewhere
- Prioritize collection and funding actions by the exact coverage gap
- Create a payroll reserve policy so routine payroll is not dependent on last-minute customer payments
Stress-test the result by changing the most uncertain input. A responsible decision should survive a slower collection case, a cost overrun or a delayed receipt. Recalculate when new evidence arrives instead of allowing an old output to become a permanent forecast.
Common mistakes and limits
Watch for counting unsigned promises, excluding taxes or benefits, using overdraft availability without fees, and assuming partial payroll can be distributed without legal consequences. This calculator does not prepare a GAAP or IFRS cash-flow statement, predict insolvency or establish that financing is affordable. It is a management diagnostic built from the figures entered. If full payroll cannot be covered, obtain jurisdiction-specific employment and accounting advice immediately and communicate through a lawful, documented plan.
What this calculator answers
Can available cash and confirmed receipts cover the next payroll?
Formula and assumptions
Coverage ratio = cash available for payroll ÷ payroll due.
The result is an estimate. It is only as reliable as the inputs, and it does not account for every tax, legal, financing or operational consequence.
Worked-example method
Use the prefilled sample values, calculate once, then replace every input with numbers from your records. The result will show a risk level, key measurements and one recommended next move.
How to interpret the result
- Low: no immediate gap or the entered position is comparatively protected.
- Medium: manageable pressure exists, but it should receive a dated correction plan.
- High: the problem can materially damage cash or operations and requires near-term action.
- Critical: the entered assumptions indicate immediate loss, shortage or survival risk.
Authoritative references
Sources provide general business and operational context. The formula and result are decision-support estimates created by Business Rescue Tools.
Frequently asked questions
What does this calculator tell me?
Can available cash and confirmed receipts cover the next payroll?
How is the result calculated?
Coverage ratio = cash available for payroll ÷ payroll due.
Should I make a major decision from this result alone?
No. Use the result to identify and quantify a problem, then verify the underlying records, assumptions and local legal or accounting requirements.
Does the site store the figures I enter?
This browser-based calculator runs in your browser and does not submit the figures to our server.