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Cash Runway Calculator

Calculate how many months your business can continue at its current net cash burn—and what to change before cash runs out.

Evidence, verification and review status

Published formula: visible on-page · Internal QA release: Aug. 31, 2026 · Independent professional review: not yet claimed.

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Cash runway formula — direct answer

Cash runway = available cash ÷ monthly net cash burn. Monthly net cash burn is monthly cash costs minus monthly cash actually collected. Use spendable cash—not inventory, restricted funds or unpaid invoices that have not been collected.

Calculate your result

Use figures from the same period and currency. Avoid mixing estimates with verified amounts without noting the difference.

The formula is currency-neutral; keep all monetary inputs in the same currency.
Cash available to support operations.
Actual cash collected, not just invoices issued.
All recurring and essential cash outflows.
Name or role for the printed management record.
Date assigned for the next review or corrective action.

Privacy: This calculation runs in your browser. The figures you enter are not submitted to our server.

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

  1. Calculate a base case and a downside case using lower collections and higher essential costs
  2. Set a trigger date for cutting discretionary spending before runway falls below the chosen minimum
  3. 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.

Stress-test the runway before you trust the headline number

A base-case runway can look comfortable until collections slip. The result now shows 10% lower collections, 10% lower cash costs, the cash needed to support six months at the current burn, and the monthly collections needed to reach a six-month runway with current cash.

Use the downside case as the planning floor. A runway forecast is strongest when it survives a realistic collection delay rather than only the owner’s best-case month.

Frequently asked questions

What is the cash runway formula?

Cash runway = available cash ÷ monthly net cash burn. Monthly net cash burn is monthly cash costs minus monthly cash actually collected.

How do I calculate cash runway?

Use unrestricted cash that can support operations, then subtract average monthly cash collected from average monthly cash costs to find net burn. Divide available cash by that monthly burn.

Do unpaid invoices count as available cash?

Not until they are actually collected. A receivable can be valuable, but it is not spendable cash and should be tested separately through your collection plan.

What if the business is cash-flow positive?

If monthly cash collected is at least as high as monthly cash costs, this calculator reports the business as cash-positive rather than forcing a finite runway number.

How often should I recalculate runway?

Recalculate whenever cash balances, collection timing or major recurring costs change. During cash pressure, review it at least monthly and after any major hiring, financing or revenue shock.

Does this predict insolvency?

No. It is an operating cash forecast based on the inputs entered, not a solvency opinion, audit, financing recommendation or statutory cash-flow statement.

How much cash do I need for six months of runway?

Multiply the current monthly net cash burn by six. The result panel shows that cash target and also estimates the monthly collections needed to reach six months using the cash already available.

Why show a 10% lower-collections scenario?

A single forecast can create false confidence. A modest collection decline tests whether the business still has enough time to act when customers pay more slowly than expected.