Cash Runway Calculator
Inputs
Results update liveCash held back for collections timing, refunds, or payroll cycles.
Interpretation
What your result means
If monthly revenue is lower than operating cost, runway is cash divided by net burn. If revenue covers the burn, focus on whether that revenue stays dependable—not on a countdown that does not exist yet.
Example
Worked example
A realistic scenario showing how the calculation guides a practical decision.
If you have $300,000 in cash and are burning $50,000 per month after revenue, the business has about six months of runway.
If revenue covers another $15,000 of cost, the runway extends—but only while that revenue stays dependable. Add a reserve target before you decide the business can safely hire, launch, or delay fundraising.
Watch out
Common mistakes
- Using headline cash without holding back a reserve buffer.
- Treating one good revenue month as permanent coverage of burn.
- Ignoring payroll timing, refunds, and collections delays.
- Cutting growth spend only after runway becomes a deadline.
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Where this number takes you next
Each step builds on the result above.
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FAQ
Frequently asked questions
How the calculation works and where its limits are.
What is cash runway?
Runway is how long the business can keep operating at the current net burn before cash runs out. It is a planning window, not a guarantee.
Why set a reserve months target?
Reserves cover timing gaps like payroll cycles, refunds, slow collections, or a softer sales month without forcing emergency cuts.
What if revenue covers costs?
When monthly revenue exceeds operating costs, net burn is zero and runway is not the limiting factor until spending or revenue changes.