Profitable businesses still fail when they run out of cash. Cash runway is how many months you can keep operating on the cash you have now, at your current rate of spending. Enter what comes in and goes out each month to see your runway, the month cash would run out, and a 3-year cash projection.
Cash Runway Calculator
How many months your cash lasts at your current burn.
Cash runway
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Estimates only. Results update as you type. Nothing you enter leaves your browser.
How cash runway is calculated
Runway (months) = Cash on hand ÷ Net burn
The simple formula assumes the next months look like this one. The growth fields make it more realistic. The calculator moves forward month by month, grows revenue and expenses at the rates you enter, and finds the month the balance would drop below zero. If revenue grows faster than costs, it also shows when you become cash-flow positive.
Worked example
A landscaping company has $150,000 in the bank during a slow season. It collects $40,000 a month and spends $55,000. Net burn is $15,000 a month, so runway is $150,000 ÷ $15,000 = 10 months. If spring bookings grow revenue 5% a month, the balance stops falling and the runway stretches much further. Try it in the calculator.
Use cash numbers, not accounting profit
Runway runs on cash. Use money actually collected, not invoices sent, and include cash costs that don't appear on the profit-and-loss statement, such as loan principal, equipment purchases, and owner draws. A business can show a profit and still burn cash while customers are slow to pay.
How to extend your runway
- Collect faster. Shorten payment terms, take deposits, send invoices the day work finishes, and follow up on anything past due.
- Cut or pause spending. Start with costs that don't affect revenue.
- Pay suppliers on time, not early. Use the full payment terms you've been given.
- Line up credit before you need it. Banks are more willing to lend when your numbers look healthy. Use the business loan calculator to size a payment you can afford.
Frequently asked questions
How many months of runway should a small business have?
A common target is three to six months of operating expenses in reserve. Seasonal businesses, and businesses with a few large customers, should aim for more.
What's the difference between gross burn and net burn?
Gross burn is everything you spend in a month. Net burn is spending minus cash coming in. Runway uses net burn.
Does runway matter if my business is profitable?
Yes. Profit and cash differ in timing. Growth, slow-paying customers, inventory purchases, and loan payments can all drain cash while your profit-and-loss statement still shows a profit.
How often should I recalculate runway?
Monthly, when you close your books. Recalculate weekly if runway is under six months.
More free small business calculators
See all thirteen on the small business calculators page.
These calculators give planning estimates, not tax, legal, or financial advice. Check important decisions with your accountant or lender.
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