Cash Runway Calculator
Cash runway is how many months a business can keep paying its bills before the cash runs out, if nothing changes. The burn rate is how much cash leaves each month after income comes in.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Take the monthly income away from the monthly spending. That gap is the net burn. Divide the cash in the bank by the net burn to get the months of runway. If income covers spending, there is no burn and the runway shows 0. That does not mean the cash is gone, only that it is not being used up this month.
Worked example
With $120,000.00 in the bank and a net burn of $18,000.00 a month, the cash lasts about 6.7 months.
Questions
Does this count income that is not yet coming in?
No. It uses the income you enter. If sales are growing, run the numbers again with next month's figures.
Should I plan on the full cash in the bank?
Many people keep a reserve they do not count on. Plan on losing some months to slow sales or late payments.
How often should I update it?
Once a month, after your books close, is a good rhythm.
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