Cash Runway Calculator

Use this calculator to estimate cash runway.

What this calculator does

The cash runway calculator helps estimate how many months a business can continue operating based on available cash and monthly burn.

It is useful for:

• funding planning
• startup management
• budgeting
• cash risk analysis

Formula

Cash Runway = Cash Balance ÷ Monthly Burn

Where:

• Cash Balance = current available cash
• Monthly Burn = average monthly cash used
• Cash Runway = number of months cash can last

Example calculation

If:

• Cash balance = 100000
• Monthly burn = 20000

Then:

• Cash runway = 100000 ÷ 20000
• Cash runway = 5

What is cash runway?

Cash runway is the number of months a business can continue operating before cash runs out, assuming burn stays constant.

Why cash runway matters

This calculation helps businesses:

• plan funding needs
• manage risk
• support budget decisions
• improve financial visibility

When to use this calculator

Use this calculator when you want to:

• estimate funding urgency
• review cash position
• compare spending scenarios
• support investor communication

Common mistakes

Common mistakes include:

• using inconsistent burn rate estimates
• ignoring expected revenue changes
• assuming burn stays fixed when it may change
• excluding restricted cash

Cash runway vs burn rate

These are closely related.

• Cash runway shows how long cash lasts
• Burn rate shows how fast cash is being used

Related calculations

You may also want to use:

• Burn Rate Calculator
• Cash Flow Calculator
• Working Capital Calculator

FAQs

What does this calculator do?

It helps you estimate cash runway.

Why is cash runway important?

It shows how much time the business has before needing new cash or reduced spend.

Can runway change quickly?

Yes. Any major change in spending or revenue can change runway significantly.