Chart · Freelance Rates
Worked Example: Backlog Capacity and Collection Delay
Work through an overloaded delivery schedule and a delayed client receipt, showing why capacity and cash gaps require separate calculations.
A service team has 320 delivery hours remaining on accepted work and can deliver 80 hours per week. Its client deadline is three weeks away, leaving 80 hours uncovered. The team also opens the period with $5,000 cash, expects $20,000 of receipts and schedules $17,000 of payments. Capacity and cash answer different questions; a paid invoice does not clear a delivery bottleneck.
Capacity gap = 320 − 80 × 3 = 80 hours; stressed cash = $5,000 + $20,000 − $4,000 − $17,000 = $4,000
| Measure | Calculation | Result |
|---|---|---|
| Weeks of work | 320 / 80 | 4 weeks |
| Capacity before deadline | 80 × 3 | 240 hours |
| Uncovered work | 320 − 240 | 80 hours |
| Closing cash before delay | $5,000 + $20,000 − $17,000 | $8,000 |
| One client receipt delayed | $8,000 × 50% | $4,000 |
| Closing cash after delay | $8,000 − $4,000 | $4,000 |
| Buffer above chosen reserve | $4,000 − $2,000 | $2,000 |
Interpret the result
The selected client accounts for 40% of total scheduled receipts: $8,000 divided by $20,000. Delaying half that receipt lowers this period's cash by $4,000 without automatically reducing earned revenue. Put the delayed amount into the later collection period, and avoid recording it as both a receipt loss and a second expense. The $2,000 reserve is a target, so it is compared with closing cash rather than paid out.
Check before applying the example
Adding 80 delivery hours before the deadline would close the aggregate capacity gap, but any contractor or overtime spending would also change the cash schedule. Its availability, skill match and contractual cost need separate evidence. Conversely, collecting the delayed receipt sooner would improve cash but leave the 80-hour workload gap intact. Map the two constraints together before agreeing to a revised scope or start date.
Use your own inputs
The calculator uses the same stated decision boundary.
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Project Backlog Capacity Calculator
Compare accepted unfinished work with productive weekly capacity and a delivery horizon, exposing both…
Method reference: OpenStax: Operating Budgets. Checked October 22, 2026. Capacity, sales and delivery-cost budgets; no market rate assumptions.
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