Cash Burn Runway Calculator
How many months does available cash cover at my entered positive net cash burn? Check the formula, a worked example and the stated measurement limits.
Result for the values shown.
Calculations run in your browser.
What to enter
| Input | Meaning and units |
|---|---|
| Available operating cash (currency) | Enter available operating cash in currency. Use the measurement basis described below. |
| Monthly operating cash payments (currency/month) | Enter monthly operating cash payments in currency/month. Use the measurement basis described below. |
| Monthly operating cash receipts (currency/month) | Enter monthly operating cash receipts in currency/month. Use the measurement basis described below. |
Understanding your result
Test a higher payment scenario or lower receipt scenario and compare runway sensitivity. Build a dated cash schedule when payments or receipts are uneven.
Common mistakes
- Profit and net cash flow can differ substantially.
- A large annual invoice or debt payment can invalidate an average-month forecast.
- Mixing annual and monthly periods, or leaving out a cost that the model does not include.
Check your calculation
- Compare a simple one-period or zero-change case with hand arithmetic before applying a longer scenario.
Choose a consistent measurement basis
Use cash receipts and cash payments rather than recognized revenue and accounting expenses. Decide whether restricted cash, financing flows, taxes and one-time payments belong in the scenario.
A second independently worked case
No available cash produces zero runway under positive cash burn. Inputs: Available operating cash: 0 currency; Monthly operating cash payments: 20000 currency/month; Monthly operating cash receipts: 5000 currency/month. Results: Net monthly cash burn: 15000 currency/month; Modeled runway: 0 months.
Precision and output units
Displayed results: Net monthly cash burn in currency/month, rounded to 2 decimal places; Modeled runway in months, rounded to 3 decimal places. Display rounding does not establish the precision of the original measurements or estimates.
Calculation checks, sources and review limits
How many months does available cash cover at my entered positive net cash burn?
How many months does available cash cover at my entered positive net cash burn? Check the formula, a worked example and the stated measurement limits.
Common uses
- How many months does available cash cover at my entered positive net cash burn
- Compare Cash Burn Runway across scenarios under matching definitions.
How it works
Subtract monthly operating receipts from payments to obtain positive net cash burn, then divide available operating cash by that burn. Zero or negative burn has no finite depletion time under this model and is rejected.
Worked example
20,000 − 5,000 = 15,000 monthly burn; 90,000 ÷ 15,000 = six months. Enter available operating cash 90000 currency, monthly operating cash payments 20000 currency/month, monthly operating cash receipts 5000 currency/month. The independently worked result is net monthly cash burn 15000 currency/month; modeled runway 6 months. Compare this example with your reporting definitions before substituting your own figures.
FAQ
Why can accounting profit and cash runway differ?
Revenue recognition and expense allocation can occur at different times from cash receipts and payments. Runway here uses available cash and entered cash movements.
Why are zero and negative net burn rejected?
This tool models depletion under positive net burn. A non-depleting constant-flow scenario has no finite exhaustion time; it should not be represented as zero months or an invented finite runway.