Cash Flow Tool

Staffing Agency Cash Gap Calculator

You pay your people every week. Your clients pay you in 45 days. This shows what that gap is really costing you.

Monthly billings

Gross margin (bill minus pay rate & burden)

Payroll frequency

Average DSO (days to get paid)

days

How do you fund the gap today?

Cash locked in AR

$739,726

At 45 days DSO on $500K/mo in billings

Payrolls you float

6.4

Weekly runs of $87K each before client cash lands

Cash you front

$554,795

Payroll paid out, not yet collected

Cost of self-funding

No financing fees, but $555K of your own cash does the work

Your cash gap, on a timeline

Each red tick is a weekly payroll run at $87K. You cover 6 of them ($519K) before the first invoice turns into cash on day 45.

Day 0: work starts, payroll startsDay 45: client pays

What collecting faster is worth

Cash locked in AR at your current DSO vs. tightening collections by 5, 10, and 15 days.

TodayDSO 45

$740K

5 days fasterDSO 40

$658K+$82K freed

10 days fasterDSO 35

$575K+$164K freed

15 days fasterDSO 30

$493K+$247K freed

Collecting 10 days faster puts about $164,384 back in your bank account. That is cash for hiring, payroll cushion, or growth, without borrowing a dollar.

Want the full 13-week cash forecast?

This calculator shows the gap. A 13-week forecast shows exactly when it bites and what to do about it.

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Estimates for planning purposes only. Assumes billings and payroll are spread evenly through the month. Factoring cost is the per-invoice fee applied to annual billings. Line of credit cost is the stated rate applied to the average balance needed to cover payroll during the collection period.