# Additional Funds Needed (AFN) Calculator

Get a clear picture of the additional funds your business needs for growth with AFN Calculator. Includes a simple pie chart visualization for easy decision-making.

Result Additional Funds Needed (AFN) \$0

More Calculators: Compounding Interest Calculator, Savings Withdrawal Calculator, Savings Calculator, Inflation Calculator, Working Capital/, Weighted Average Cost of Capital (WACC), Cost of Capital

The formula for calculating AFN is:

`AFN = (A*/S0) * S - (L*/S0) * S - MS1`

Where:

• `A*` = projected total assets
• `S0` = current sales
• `S` = projected sales
• `L*` = projected total liabilities
• `MS1` = additional external financing required

Suppose ABC Corp. is planning for next year and has projected the following financial data:

• Projected total assets (A*): \$500,000
• Current sales (S0): \$1,000,000
• Projected sales (S): \$1,200,000
• Projected total liabilities (L*): \$350,000
• External financing available: \$100,000

Using the AFN formula, we can calculate the additional funds needed:

`AFN = (\$500,000/\$1,000,000) * \$1,200,000 - (\$350,000/\$1,000,000) * \$1,200,000 - \$100,000`

`AFN = \$240,000 - \$420,000 - \$100,000`

`AFN = -\$280,000`

Based on this calculation, ABC Corp. would need an additional \$280,000 in external financing to support its projected growth.

More Articles