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Idle cash calculator for businesses
See how much of your bank balance is needed for operations, how much may be surplus, and what illustrative returns on your own assumptions would look like.
Last updated . General information only.
Calculator
Your illustrative result
Current bank balance
₹50,00,000
Cash needed for operations
₹34,00,000
Obligations ₹18,00,000 + reserve ₹16,00,000
Potential surplus
₹16,00,000
Before any investment decision
Amount modelled (50% of surplus)
₹8,00,000
Over 3 months
Illustrative comparison over 3 months
| Option | Annual rate (pre-tax) | Gain, pre-tax | Gain, after tax | Difference vs baseline, pre-tax |
|---|---|---|---|---|
| Idle in current account (baseline) | 0% | ₹0 | Enter a tax rate | — |
| Liquid mutual fund (example) | 6.5% | ₹13,000 | Enter a tax rate | ₹13,000 |
| Bank fixed deposit (example) | 6% | ₹12,000 | Enter a tax rate | ₹12,000 |
Post-tax figures appear only when you enter a tax rate. Pre-tax figures are shown otherwise.
Figures are illustrative. Gains are not guaranteed and do not account for fees, exit loads, timing of tax payments or the cost of moving money. The baseline is 0% before tax.
How these numbers are calculated
- Obligations = payroll + GST and other taxes + vendor payments + other dated obligations.
- Reserve = monthly operating expenses × reserve months.
- Cash needed = obligations + reserve. Surplus = bank balance − cash needed, never below zero.
- Amount modelled = surplus × the share you chose.
- Gain = amount modelled × annual rate × (months ÷ 12). This is simple pro-rata interest, not compounding.
- After-tax gain = gain × (1 − tax rate), only where a tax rate is entered.
- Difference vs baseline = option gain − baseline gain, on the same basis.
Limits and risks
- Rates are your assumptions. Actual returns on funds or deposits can be lower, and fund returns vary daily.
- Mutual fund units are not bank deposits and are not covered by deposit insurance. Their value can fall.
- Redemption timing, exit loads, minimum amounts and settlement cut-offs depend on the product.
- Tax depends on the entity, instrument and holding period. Confirm the rate with your chartered accountant.
- This tool does not recommend any product, amount or timing. It does not assess your risk capacity or any regulatory requirement.
Want these numbers checked against your actual cash plan?
Our team can review your cash position, obligations and options with you. No commitment.
Why idle cash needs a number first
Many businesses hold a large balance without a clear figure for what must stay available. Payroll, tax deadlines and supplier payments arrive on fixed dates, and a reserve protects against slower receipts. Only the amount left after those commitments is a candidate for any deployment decision.
This calculator gives that figure. It is a starting point for a conversation with your finance team and adviser, not a conclusion about what to invest.
Read these before you act on a result
- Corporate treasury management: the four-step process behind the numbers
- Current account vs liquid mutual fund: liquidity, risk and tax
- Corporate FD vs liquid mutual fund: when a fixed term helps
The calculator uses simple interest over the period you enter, so it does not show compounding or the effect of a particular fund’s price movements. For the basis of each figure, see the methodology shown with your result. Back to the EasyToInvest homepage.
Talk to the EasyToInvest team
Share your cash position and what you are weighing up. We will walk through the options and the trade-offs with you.