# Working Capital Formula for SaaS: Why Negative is Actually Good

DevFeed: [Working Capital Formula for SaaS: Why Negative is Actually Good](<https://devfeed.tech/articles/working-capital-formula-for-saas-why-negative-is-actually-good-10448.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/working-capital-formula-saas/>)

Author: Ayush Agarwal

Published: 2026-06-04T00:00:00Z

Content type: article

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [1Password in the browser](<https://devfeed.tech/topics/1password-in-the-browser.md>)

Tags: [accounting](<https://devfeed.tech/tags/accounting.md>), [deferred](<https://devfeed.tech/tags/deferred.md>), [economics](<https://devfeed.tech/tags/economics.md>), [guide](<https://devfeed.tech/tags/guide.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-finance](<https://devfeed.tech/tags/saas-finance.md>), [subscription](<https://devfeed.tech/tags/subscription.md>)

## AI overview

This guide explains the working capital formula for SaaS businesses and why negative working capital can support growth. It describes how upfront subscription payments create deferred revenue and may fund operations without debt.

## Source excerpt

Working capital formula explained for SaaS. Why negative working capital is a feature not a bug for subscription businesses, with examples and benchmarks.