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Finance Calculators

Cash Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Cash ratio

0.500

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Cash Ratio Calculator

The Cash Ratio Calculator works out your cash ratio in an instant. Enter cash & equivalents and current liabilities and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the cash & equivalents.
  2. Enter the current liabilities.
  3. Read off your cash ratio — the calculator updates automatically, with no button to press.

Formula

The Cash Ratio Calculator uses the formula:

Cash ratio = Cash & equivalents ÷ Current liabilities

Worked example

For example, with cash & equivalents of 200,000 and current liabilities of 400,000, the cash ratio is 0.500.

Inputs used
Cash & equivalents 200,000
Current liabilities 400,000
Results
Cash ratio 0.500

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It is cash and equivalents divided by current liabilities. 200,000 cash against 400,000 liabilities is 0.5.

The cash ratio counts only cash, while the current ratio includes all current assets like inventory and receivables.

There is no fixed target. Around 0.5 to 1 shows strong liquidity, but too high may mean idle cash.

It is the strictest liquidity test, showing whether a firm could pay short-term debts immediately.

The Cash Ratio Calculator uses the formula: Cash ratio = Cash & equivalents ÷ Current liabilities. For example, with cash & equivalents of 200,000 and current liabilities of 400,000, the cash ratio is 0.500.

Enter the cash & equivalents. Enter the current liabilities. Read off your cash ratio — the calculator updates automatically, with no button to press.

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