Cash Runway Calculator
Work out your monthly net burn, how many months of runway you have left and the month cash is projected to reach zero.
Formula and method
Net burn = monthly expenses − monthly revenue.
Runway = (cash in the bank − committed one-off costs) ÷ net burn, in months.
If revenue is greater than or equal to expenses the business is cash-flow positive and there is no finite runway; the projection then shows the cash balance growing.
Worked example
€100,000 in the bank, €20,000 of monthly revenue and €30,000 of monthly expenses.
Net burn = €30,000 − €20,000 = €10,000 a month.
Runway = €100,000 ÷ €10,000 = 10 months.
FAQ
Frequently asked questions
What is cash runway?
The number of months a business can continue operating at its current net burn before cash reaches zero, assuming nothing else changes.
What is net burn?
Monthly operating expenses minus monthly revenue. If revenue exceeds expenses the business is cash-flow positive and has no finite runway.
Should I include one-off costs?
Yes, if they are committed. Enter them in the one-off field and they are deducted from starting cash rather than spread across the months.
How much runway is considered healthy?
There is no universal figure, but many early-stage companies aim to keep at least twelve to eighteen months so that fundraising is not forced.
Does this account for growth?
No. It holds revenue and expenses constant. Growing revenue extends runway and rising costs shorten it, so re-run the numbers as your plan changes.
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