Cash and cash equivalents available today.
Cash out minus cash in, in a typical month.
Six months or more gives you room to make decisions from strength rather than panic. Keep tracking it as your burn changes.
Cash over time
How your balance falls at the current burn rate.
How cash runway is calculated
Cash runway is simply your available cash divided by your net monthly burn — the cash going out each month minus the cash coming in:
Runway (months) = Cash balance ÷ Net monthly burn
Why it matters
Cash is what keeps the lights on. Profitable businesses still fail when they run out of cash at the wrong moment. Knowing your runway turns a vague worry into a number you can act on — and gives you enough warning to do something about it.
As a rule of thumb, under 3 months is urgent, 3–6 months needs a plan, and 6 months or more gives you breathing room.
Frequently asked questions
What counts as monthly burn?
Your net burn is total cash out (payroll, rent, suppliers, loan repayments, everything) minus cash in from sales in a typical month. If more comes in than goes out, you're cash-flow positive and not burning cash.
How much runway should a business have?
There's no universal rule, but many advisors suggest keeping at least 6 months of runway. Below 3 months is generally treated as urgent because you have little time to react if something goes wrong.
Is runway the same as profit?
No. Profit is an accounting measure over a period; runway is about cash in the bank right now versus how fast it's leaving. A profitable business can still have short runway if customers pay slowly.
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These calculators are for general guidance only and use the figures you enter. They are not financial, accounting or tax advice. Always check important decisions with a qualified professional.