Cash Runway Calculator
Cash runway estimates how long available operating cash could cover a business's net monthly cash outflow if the current burn rate continued. It is a planning indicator, not a forecast of future sales or an evaluation of borrowing.
How to use this calculator
- Enter cash available for operations, average monthly operating expenses, and average monthly operating income.
- Review the worked cash runway example and compare its arithmetic with the inputs you plan to use.
- Change one input at a time when exploring a different scenario, and keep units and assumptions consistent.
Runway from net burn
Net monthly burn = monthly expenses − monthly operating income; runway in months = available cash ÷ net monthly burn when burn is positive.
- If income is equal to or greater than expenses, the entered values do not describe positive monthly burn, so a simple runway result is not meaningful.
- The page's numerical output is calculated from the values entered; it does not independently verify whether those inputs fit the real-world situation.
Worked examples
Cash runway example
A business has €30,000 of operating cash, €18,000 monthly expenses, and €12,000 monthly operating income.
Net burn = €18,000 − €12,000 = €6,000; runway = €30,000 ÷ €6,000 = 5 months
The simple cash-runway estimate is five months.
Understanding the result
The estimate depends directly on the current monthly net burn used in the denominator.
Seasonality, delayed invoices, inventory purchases, taxes, capital spending, and one-off events can change cash flow sharply.
Important notes
Use a consistent monthly period and revisit the inputs whenever actual cash flow changes.
Displayed values may be rounded for readability. Keep appropriate precision for intermediate calculations and check the unit labels before using the result.
Frequently asked questions
What does the Cash Runway Calculator result mean?
The estimate depends directly on the current monthly net burn used in the denominator.
What should I check before using the cash runway calculator?
Use a consistent monthly period and revisit the inputs whenever actual cash flow changes.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
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This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.