Cash runway and burn rate calculator
Estimate how long current cash lasts.
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How it works
Estimate how long current cash would last at a steady monthly cash burn rate, then inspect or download a month-by-month projection. A reserve of 120,000, monthly collections of 18,000 and monthly payments of 28,000 produces a 10,000 net burn and 12 months of runway. If collections equal or exceed payments, this model predicts no cash depletion at that rate. The cash-on-hand divided by net-burn definition is also used in the Cartier Women’s Initiative applicant guide: https://www.cartierwomensinitiative.com/v3/assets/bltb7e02857fe9fdf11/bltd20c11871e342584/67cb33d17a9eb72f2967e345/2026_S%26TP_Award_Applicant_Guide.pdf
A few things to know
A constant-rate planning estimate, with cash flows assumed to occur evenly through each month. It does not model collection delays, intra-month payroll timing, growth, seasonality, tax deadlines, one-off purchases, debt payments or financing unless you include them in your cash inputs. No depletion at the entered rate is conditional, not a promise that cash cannot run out. Negative future balances represent additional funding needed to continue operations. Use unrestricted cash, one currency and realistic average cash flows; accounting revenue or profit can differ from cash. Display amounts are rounded to two decimals.
Results use your inputs. Keep all money amounts in the same currency.
When to use this tool
Cash runway answers a different question from profit: how long can the money available now support the cash shortfall your business is generating? This calculator compares average monthly cash collections with cash payments, divides the available reserve by a positive net burn, and creates a month-by-month projection. It is a quick constant-rate planning check for founders and small businesses. Use collected cash and payments rather than unpaid invoices or non-cash accounting entries, and update the assumptions when the operating plan changes.
- Estimate how much time remains before current unrestricted cash is depleted at the present burn rate.
- Compare spending reductions or collection improvements against the same starting reserve.
- Download a simple projection to discuss the size and timing of a potential funding gap.
How to use cash runway and burn rate calculator
Enter cash available now
Use Available cash reserve for spendable funds already held. Exclude restricted balances and financing you have not received.
Set monthly cash movements
Enter Monthly cash revenue for actual collections and Monthly cash expenses for cash paid. Keep all amounts in one currency.
Inspect the forecast
Choose Projection horizon (months), from 1 to 120. Read Estimated cash runway and Monthly net burn, then inspect closing balances or download the table.
Twelve months of cash at a 10,000 burn
Inputs
Available reserve 120,000; monthly cash revenue 18,000; monthly cash expenses 28,000; projection horizon 18 months.
Result
Net burn is 10,000.00 per month and runway is 12 months. Month 12 closes at zero. The 18-month projection reaches a funding deficit of 60,000.00.
What it means
The business uses 10,000 more than it collects each month. Continuing the same operation for the last six projected months would require additional funding; the negative projected balance is not cash available to spend.
Common mistakes to avoid
Using invoiced revenue
An invoice cannot fund payroll until it is collected. Build the revenue assumption from receipts expected during each month.
Averaging away major payments
Tax deadlines, annual renewals and equipment purchases can create an earlier shortage than a steady monthly model suggests.
Counting hoped-for financing
The reserve represents cash already available. Include future financing in a separate dated plan rather than treating it as current runway.
Frequently asked questions
Definitions, edge cases, and practical next steps for this tool. Search all tool FAQs ↗
How is cash runway calculated?
Monthly net burn equals cash expenses minus cash revenue. When that amount is positive, runway is available cash divided by net burn. A reserve of 120,000 and burn of 10,000 therefore lasts 12 months under the constant-rate assumptions.
What is the difference between gross and net burn?
Here the entered monthly expenses represent cash outflow, while net burn subtracts monthly collections from that outflow. The runway calculation uses net burn. Do not divide the reserve by expenses alone if collections are intended to support the same forecast.
Why does the tool say no depletion at this rate?
Monthly revenue equals or exceeds expenses, so the constant-rate model keeps cash flat or increasing. This is conditional on those inputs continuing. It does not rule out timing shortages, future losses or a one-off payment that the model does not include.
Does the projection horizon limit the runway?
No. The horizon controls the number of monthly rows, with a maximum of 120. The reserve-divided-by-burn calculation can show a runway longer than the table. A short table should not be interpreted as the full funding plan.
Why do rows continue after cash reaches zero?
They show the theoretical financing deficit if operations continued at the same rate. The calculation does not authorize spending unavailable funds or assume a lender will provide them. Use negative rows to quantify the gap requiring a changed plan or additional cash.
Can the result show a fraction of a month?
Yes. The calculation assumes cash flows occur evenly through each month. A 125,000 reserve with 10,000 burn gives 12.5 months. Actual payroll and customer-payment dates can make the practical cash shortage occur earlier or later.
What happens with zero starting cash?
A positive burn gives zero runway. If net flow is nonnegative, the tool still warns that there is no starting buffer. Receipts arriving after a payment deadline can create an immediate shortfall even when monthly totals appear sufficient.
How do I model growth or a new hire?
This calculator holds monthly revenue and expenses constant. Compare separate scenarios for a quick sensitivity check, or use the hiring runway calculator for a salary starting in a future month. A detailed dated cash forecast is needed for changing collections, expenses or financing.
Explore the topic in the blog
Sources and method
Use the references below to check definitions and platform guidance. The model’s scope and limits are explained above. Read our editorial standards.