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Business Calculators

Current Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
Verified formula Private

Current ratio

1.50

Working capital
₹5,00,000

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

How to use the Current Ratio Calculator

The Current Ratio Calculator works out your current ratio, along with 1 related figure in an instant. Enter current assets 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 current assets.
  2. Enter the current liabilities.
  3. Read off your current ratio, together with working capital — the calculator updates automatically, with no button to press.

Formula

The Current Ratio Calculator uses the formula:

Current ratio = Current assets ÷ Current liabilities

Worked example

For example, with current assets of ₹1,500,000 and current liabilities of ₹1,000,000, the current ratio is 1.50.

Inputs used
Current assets ₹1,500,000
Current liabilities ₹1,000,000
Results
Current ratio 1.50
Working capital ₹5,00,000

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 current assets divided by current liabilities, showing whether a business can cover short-term debts. 15,00,000 assets over 10,00,000 liabilities is a current ratio of 1.5.

A ratio between about 1.5 and 3 is often considered comfortable. Below 1 may signal liquidity problems; very high may mean idle assets.

The quick ratio excludes inventory, which is harder to convert to cash quickly, so it is a stricter test of short-term liquidity.

Working capital is current assets minus current liabilities — the short-term funds available to run the business day to day.

The Current Ratio Calculator uses the formula: Current ratio = Current assets ÷ Current liabilities. For example, with current assets of ₹1,500,000 and current liabilities of ₹1,000,000, the current ratio is 1.50.

Enter the current assets. Enter the current liabilities. Read off your current ratio, together with working capital — the calculator updates automatically, with no button to press.

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