You're profitable on paper and broke in your checking account.
That's Net-30. The work is done, the invoice is out, and rent is due before the money lands. Figure out how big a cushion bridges the gap.
Tax data last updated: July 2026. Sources & methodology
Your cash cycle
What you invoice in a typical month.
Net-30 means the clock starts when you send the invoice, not when you did the work.
Be honest. 'Net-30' often means 42 in practice.
What actually leaves your account each month.
Money you invoice today lands in about 42 days — this buffer covers the gap.
- Real wait per invoice
- 42 days
- Receivables always in transit
- $11,200
- Buffer to never miss a bill
- $7,700
Rough model assuming steady billing. Two levers shrink the buffer fast: a deposit up front (30–50% is normal) and shorter terms — Net-15 with new clients is easier to set than to negotiate later. Late fees help too, once they're in the contract.
How this is calculated
We take your real wait per invoice — the stated terms plus the days clients habitually run late — and compute two numbers. First, the receivables always in transit: money you've earned that hasn't arrived, roughly your daily billing times the wait. Second, the one that matters: enough cash to cover your actual monthly costs across that same wait.
That second figure is your working-capital floor. Below it, one slow-paying client means choosing which bill to skip. On top of it, most freelancers keep a separate 3–6 month emergency fund — the buffer handles timing, the fund handles losing a client entirely.