How much cash should a web design agency keep?

A web design agency sells projects. Most take a deposit up front, a payment at a milestone, and the balance at launch. Launch dates slip, so the last payment slips with them. Hosting and maintenance plans add a small, steady monthly base.

Payroll per run, all-in $ How often you run payroll Fixed bills per month (rent, loans, insurance, software) $ Days your customers take to pay, on average days Cash in the bank today $

Minimum to keep

Two payroll runs plus one month of fixed bills

Comfortable level

Covers costs while you wait for customers to pay, plus one month

Weeks your cash covers

If no customer paid you

The starting numbers are an example. Replace them with yours.

How cash moves in a web design agency

Deposits bring cash in before the work, which helps.
Final payments wait on launch, and launch waits on the client.
Scope changes add work that does not always get billed.
Hosting and care plans bill every month and steady the base.

Why the usual rule falls short

Two web agencies each bill $40,000 a month. One takes half up front and the rest at milestones. The other bills everything at launch. When a client delays content for six weeks, the second one carries the whole project on payroll.

How the calculator works

Result	Formula
Minimum to keep	2 × payroll per run + 1 month of fixed bills
Comfortable level	Monthly costs × (days to collect ÷ 30 + 1)
Weeks your cash covers	Cash ÷ weekly costs

Get this done for you every Monday

One Page CFO reads your QuickBooks, builds your 13-week cash forecast and your one-page report, and a CFO checks both. $500 a month.

Check if I fit →

Also for web agency owners, see the web design agency monthly financial report.