Working Capital Deployment ROI Calculator
Quick answer: Subtracts a treasury-style hurdle from headline return so incremental ROI reflects opportunity cost—different from simple yield on nominal cash.
Results
ROI vs hurdle (incremental)—
Net advantage vs hurdle ($)—
Choosing hurdleYieldPercent
Use short-term treasury or your WACC policy consistently—changing the hurdle changes incremental ROI without changing operations.
FX and concentration
Does not model counterparty default or trapped cash—pair with treasury memos, not benchmark tables alone.
Explore further
- ROI calculator (homepage)
- Finance hub — more calculators in this category
- ROI comparisons — how ROI relates to IRR, NPV, payback, and more
- ROI benchmarks — industry and channel reference ranges
Frequently asked questions
Why subtract an opportunity cost from annual return?
Deployed cash could earn the hurdle rate elsewhere. Net advantage is the return above that baseline; incremental ROI divides that advantage by deployed cash.
Can I include interest earned on freed cash?
Yes if you add it to annual return using the same annualization rules. Label blended benefits so treasury can audit the story.
Why might incremental ROI look small but still justify a program?
Risk reduction, service levels, or strategic option value may not appear in annualReturn—document those outside this percentage.