Free · Business planning calculators 💼

Business Funding Gap Calculator

Estimate additional funding from changes in assets, liabilities and retained earnings.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Subtract the planned increase in liabilities and retained earnings from the planned increase in assets. The remaining amount is the funding gap under these inputs; a negative result indicates a modeled surplus.

Funding gap = change in assets − change in liabilities − change in retained earnings

Worked example

Enter these known values and leave the other values blank.

Change in assets
50000 USD
Change in liabilities
10000 USD
Change in retained earnings
15000 USD
Additional funds needed
25000 USD

Assumptions and limitations

  • Inputs describe one consistent reporting period. Review the formula and counting conventions before comparing results.

Common questions

Does a funding gap mean a loan is required?

No. The calculation identifies an amount, not a funding source. Owner contributions, retained cash or changes to the plan may also address it.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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