Working capital is the money that your business needs to operate. This may include buying products, paying for expenses such as rent, electricity and water, salaries, buying stock, etc. If you think in imagery: this is the grease and fuel that you use to keep that engine of yours running.  Consider including an amount in your loan that will allow you to have a month or two months’ working capital. This will ensure that you can pay for all your expenses in the first few months if you have not hit your sales targets.  Try using the small business loan calculator above. You can keep the loan period and the amortization rate the same. Then change the loan amount. You will then have an idea of how much the extra money you may want to borrow will cost you.