Free tool
Drawing power calculator for cash credit
Drawing power
₹42 lakh
- From stock (after creditors and margin)
- ₹30 lakh
- From receivables (after margin)
- ₹12 lakh
- Usable now (lower of limit and DP)
- ₹42 lakh
You can draw about ₹12 lakh more this month.
Your limit is ₹50 lakh, but your drawing power caps you at ₹42 lakh until stock or receivables grow.
For education only. Calculations run in your browser; nothing you enter is sent or stored. Results are indicative: lenders apply their own policies, and this is not an offer of credit or advice. Disclaimer
How this works
Drawing power = (Stock − unpaid creditors) × (1 − stock margin) + Eligible receivables × (1 − receivables margin)
You can draw the lower of your sanctioned limit and your drawing power. The margins, whether creditors are deducted, and which receivables count (for example, only those below a certain age) are set in your sanction letter, so use your own lender's terms.
The default numbers in the calculator are illustrative. Keep your stock statements accurate and consistent with your books: stock audits check them.
Go deeper: Cash credit vs overdraft.