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Cash Runway Calculator – How Long Your Cash Will Last - Free Business Calculator | ASK SMB
Financial

Cash Runway Calculator – How Long Your Cash Will Last

Free Cash Runway Calculator. See how many months your business can survive based on cash and burn rate.

Calculate Cash Runway

Inputs

$

Total cash available today

$

Total monthly expenses (rent, salaries, ops, etc.)

$

Existing monthly income (e.g., from contracts, sales)

%

Expected monthly increase in revenue (optional)

Results

Monthly burn must be greater than zero

How the Cash Runway Calculator Works

What is Cash Runway?

Cash runway is the amount of time your business can continue operating before running out of money, typically measured in months. It's one of the most critical metrics for startups, early-stage companies, and any business not yet profitable. Runway tells you exactly how long you have to achieve profitability, secure funding, or make necessary changes before cash depletes. Understanding your runway helps you plan strategically, make informed decisions about spending, and know when to start fundraising or cutting costs. It's the difference between proactive planning and crisis management.

What is Burn Rate?

Your cash runway depends on your net burn—the actual cash leaving your business after accounting for revenue:

Net Burn = Monthly Expenses − Current Revenue

For example: if you spend $50,000/month on salaries, rent, and operations, but earn $20,000 from existing contracts or sales, your net burn is $30,000/month. The calculator subtracts your current monthly revenue from expenses, then applies any revenue growth to project your runway.

Why Runway Matters for Survival

  • ⚠Prevents Sudden Death: Knowing your runway prevents unexpected cash depletion and business closure
  • ⚠Fundraising Timeline: Most fundraising takes 3-6 months; you need to start before cash is critical
  • ⚠Decision Leverage: Low runway forces bad decisions and weak negotiating positions
  • ⚠Team Stability: Short runway creates anxiety and can trigger talent loss
  • ⚠Strategic Planning: Runway determines what you can realistically accomplish before money runs out

Calculation Formula

Basic: Cash Runway = Current Cash ÷ Monthly Burn

With Growth: Simulate month-by-month burn reduction

Example Calculation

Current cash:$240,000
Monthly burn:$20,000
Revenue growth:0%

Cash Runway = $240,000 ÷ $20,000 = 12 months

Cash runway:12 months
Depletion date:12 months from today

How Revenue Growth Affects Runway

Revenue growth dramatically extends runway by reducing your net burn rate over time. For example:

  • ✓With 0% growth: $240k cash ÷ $20k burn = 12 months runway
  • ✓With 10% monthly growth: Runway extends to ~15 months as burn decreases
  • ✓With 20% monthly growth: Runway can extend significantly as revenue approaches profitability

Strong revenue growth can be more valuable than fundraising — it extends runway without dilution and demonstrates market validation to investors.

How to Extend Your Cash Runway

  • 1.Reduce Burn: Cut non-essential costs, renegotiate contracts, delay hiring
  • 2.Accelerate Revenue: Focus on quick wins, shorten sales cycles, increase prices
  • 3.Secure Funding: Start fundraising 6+ months before cash runs out
  • 4.Optimize Collections: Get paid faster, offer early payment discounts
  • 5.Delay Payments: Negotiate better payment terms with vendors
  • 6.Consider Bridge Financing: Short-term loans or convertible notes to buy time
  • 7.Pivot if Necessary: If current path isn't working, change strategy before cash depletes
  • 8.Monitor Weekly: Track runway constantly and act on early warning signs

Frequently Asked Questions

Cash runway is the amount of time a business can continue operating before running out of cash, typically measured in months. It's calculated by dividing current cash balance by monthly burn rate (net cash spent per month). For example, if you have $240,000 in cash and burn $20,000/month, your runway is 12 months. This metric is critical for startups and early-stage companies that aren't yet profitable, as it determines how long they have to achieve their goals before needing more funding or becoming cash-flow positive.

Related Tools

💡 Quick Tips

  • •All calculations happen in your browser - your data is private
  • •Results update in real-time as you type
  • •Export to PDF or share via link
  • •No sign-up required

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