The Cash Flow Gap Calculator

Calculate Your Real Cash Flow Gap

Most businesses know they have outstanding invoices. What they don't realize is the actual cost of those delayed payments.

Use this calculator to see exactly how much working capital is trapped and what it's costing you every month:

Understanding Your Results

The numbers you see above represent real money that's either:

• Trapped in receivables (can't be used for growth, payroll, or expenses)
• Costing you interest (if you're using credit cards or loans to bridge the gap)
• Lost opportunity (money that could be invested for returns)

The Hidden Math Most Businesses Never Calculate

Let's break down what your trapped capital actually costs:

Cost 1: Direct Interest Expense

If you're using credit cards (18-24% APR) or business lines of credit (8-14% APR) to cover cash flow gaps, that's real money leaving your account every month.

Cost 2: Growth Opportunity Loss

Money tied up in receivables can't be invested in growth. According to the Small Business Administration, businesses that invest freed capital generate average returns of 15-25% annually.

Cost 3: Stress & Time

A 2024 survey found small business owners spend an average of 8 hours/week on payment follow-up. At $75-150/hour owner time value, that's $2,400-4,800/month in opportunity cost.

Real Business Example: Before & After

HVAC Contractor - $60K/month revenue

Before SMS invoicing:

• Outstanding receivables: $180,000
• Average payment time: 45 days
• Cash trapped: $156,000
• Credit card debt to cover gaps: $40K at 21% APR = $700/month interest
• Opportunity cost: $780/month (at 6% annual return)
• Total monthly cost: $1,480

After SMS invoicing:

• Average payment time: 8 days
• Cash trapped: $16,000
• Freed working capital: $140,000
• Paid off credit cards
• Monthly savings: $1,480 + eliminated stress

What To Do With Your Results

If your calculator shows:

If freed capital is $20K-50K:

• That's 1-2 months of payroll for most small businesses
• Enough to invest in growth marketing
• Could eliminate most credit card debt

If freed capital is $50K-200K:

• Hire 1-2 team members
• Buy critical equipment
• Build a real cash reserve (3-6 months expenses)

If monthly interest cost is $500+:

• You're paying $6,000+/year just to access your own money
• Faster collections could eliminate this entirely
• That's enough to fund SMS invoicing for 5+ years

The SMS Invoicing Solution

Businesses using SMS payment requests see average payment times drop from 42 days to 7 days—an 83% improvement.

Why SMS works:

• 98% open rate within 3 minutes
• One-click payment links (no login required)
• Automated reminder sequences
• Two-way messaging for questions

Real cost vs. benefit:

• SMS platform: $49-199/month
• Freed capital: $50K-200K+
• ROI: Usually positive within first month