Cash Runway Calculator

What Is Cash Runway?

Cash runway estimates how long available cash can fund the current net burn. It is a planning snapshot, not a forecast that automatically accounts for future growth or one-time payments.

How Do You Calculate Monthly Burn?

Subtract recurring monthly revenue from monthly cash expenses. Use actual cash movement consistently; mixing accrual revenue with cash expenses can distort the result.

What If Revenue Exceeds Expenses?

There is no current net burn when revenue meets or exceeds expenses, so a finite runway is not reported. Cash can still decline because of debt payments, taxes, or irregular costs omitted from the inputs.

Formula

• Net monthly burn = Monthly expenses − Monthly revenue
• Runway = Current cash ÷ Net monthly burn

Example

$120,000 cash with $30,000 monthly expenses and $10,000 monthly revenue creates a $20,000 net burn and six months of runway.