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Use figures from the same period and currency. Avoid mixing estimates with verified amounts without noting the difference.
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Why this matters
Cash runway tells an owner how long current liquidity can absorb a continuing monthly burn. It converts a vague fear about “running out of money” into a date-sensitive operating decision. This calculator focuses management on how many months the business can continue if cash collections and cash costs remain near the entered averages. The answer is useful because it turns a general cash concern into a quantified decision with a time window, owner and next step.
Use available unrestricted cash, actual cash collected for at least the last three months, and recurring cash expenses excluding non-cash accounting charges. Keep every figure in the same currency and planning period. Separate confirmed cash from hoped-for sales, and label estimates so they are not mistaken for verified balances. Cash-flow guidance should be read as an operating forecast, not a statement of profit. The central discipline is timing: cash must be available before an obligation becomes due.
How to act on the result
- Calculate a base case and a downside case using lower collections and higher essential costs
- Set a trigger date for cutting discretionary spending before runway falls below the chosen minimum
- Track collections and burn weekly so a one-time good month does not hide deterioration
Stress-test the result by changing the most uncertain input. A responsible decision should survive a slower collection case, a cost overrun or a delayed receipt. Recalculate when new evidence arrives instead of allowing an old output to become a permanent forecast.
Common mistakes and limits
Watch for including restricted funds, inventory or unpaid invoices as available cash; averaging seasonal months carelessly; and excluding owner withdrawals or debt payments. This calculator does not prepare a GAAP or IFRS cash-flow statement, predict insolvency or establish that financing is affordable. It is a management diagnostic built from the figures entered. If runway is under three months and the business has no credible path to positive cash flow, seek accounting, financing or restructuring support before emergency options disappear.
What this calculator answers
How many months can the business survive at its current cash burn?
Formula and assumptions
Runway = available cash ÷ monthly net cash burn.
The result is an estimate. It is only as reliable as the inputs, and it does not account for every tax, legal, financing or operational consequence.
Worked-example method
Use the prefilled sample values, calculate once, then replace every input with numbers from your records. The result will show a risk level, key measurements and one recommended next move.
How to interpret the result
- Low: no immediate gap or the entered position is comparatively protected.
- Medium: manageable pressure exists, but it should receive a dated correction plan.
- High: the problem can materially damage cash or operations and requires near-term action.
- Critical: the entered assumptions indicate immediate loss, shortage or survival risk.
Authoritative references
Sources provide general business and operational context. The formula and result are decision-support estimates created by Business Rescue Tools.
Frequently asked questions
What does this calculator tell me?
How many months can the business survive at its current cash burn?
How is the result calculated?
Runway = available cash ÷ monthly net cash burn.
Should I make a major decision from this result alone?
No. Use the result to identify and quantify a problem, then verify the underlying records, assumptions and local legal or accounting requirements.
Does the site store the figures I enter?
This browser-based calculator runs in your browser and does not submit the figures to our server.