Early-stage runway check
A team has $50,000 in cash, $12,000 in monthly revenue and $24,000 in monthly expenses.
- Cash: $50,000
- Revenue: $12,000
- Expenses: $24,000
- Revenue growth: 5%
Cash flow
Cash Runway Calculator
Estimate monthly burn, runway months and the revenue gap needed to reach break-even.
Cash flow
Cash Runway Calculator
Use this to understand how long current cash can support a startup, side project, agency or small business.
How to use this calculator
Start with conservative inputs, copy the result, then test a best-case and worst-case version. For production decisions, compare the estimate against actual accounting, analytics and payment data.
Best used for
Use this when deciding how much time current cash gives you before revenue growth, cost cuts or new funding are needed.
Formula
Cash runway estimates how many months the business can operate at the current burn rate. A next-month revenue estimate shows how growth may reduce the break-even gap.
Formula
Runway = cash balance / monthly burn. Monthly burn = expenses - revenue.
Example
How to read the result
- Runway under six months usually deserves immediate attention.
- Cash-flow positive scenarios still need checks for receivables, taxes and one-time expenses.
- Revenue growth assumptions should be stress-tested with flat and downside cases.
Common mistakes
- Using accounting profit instead of cash expenses.
- Excluding founder pay when the business soon needs to support it.
- Assuming revenue growth will arrive before expenses are due.
FAQ
What if revenue is higher than expenses?
The business is not burning cash in this simple model. Track cash conversion, receivables and one-time expenses separately.
Should founder salary be included?
Include it if the business actually pays it or needs to support it soon. Excluding real compensation can overstate runway.
How often should runway be recalculated?
Recalculate monthly, and also after major hiring, fundraising, revenue changes or large upfront purchases.
Important limits
- Cash timing, taxes, receivables and one-time expenses can shorten real runway.
- Do not rely on optimistic growth assumptions for survival planning.