Additional Funds Needed Calculator

Additional Funds Needed (AFN) Calculator

Determine the external financing required for your projected growth

Basic

Advanced

Current Assets

$

Current Sales

$

Projected Sales

$

Current Liabilities

$

Net Profit Margin

%

Dividend Payout Ratio

%

AFN Formula

AFN = (A*/S₀)ΔS - (L*/S₀)ΔS - MS₁(1 - D)

Where:
A* = Assets that increase with sales
S₀ = Current sales
ΔS = Projected sales increase
L* = Liabilities that increase with sales
M = Profit margin
S₁ = Projected sales
D = Dividend payout ratio

Fixed Assets

$

Spontaneous Liabilities

$

Liabilities that increase with sales (e.g., accounts payable)

Current Retained Earnings

$

Current Capacity Usage

%

Percentage of fixed assets currently being utilized

Additional Funds Needed Positive

$8,500.00

• Required Increase in Assets: $12,500.00
• Spontaneous Increase in Liabilities: $2,500.00
• Increase in Retained Earnings: $1,500.00
• Sales Growth Rate: 25.00%

Financing Breakdown

Sensitivity Analysis

Recommendations

Based on your inputs, you will need additional external financing. Consider these options:

1. Bank loans or lines of credit
2. Equity financing (new investors)
3. Reducing dividend payout ratio
4. Improving profit margins
5. Better working capital management