USCalcly.
Business

Cash Runway Calculator

Calculate how many months business cash can cover a steady net burn while protecting a reserve. Distinguish cash receipts from booked revenue.

Private, in-browser calculationUpdated

Illustrative arithmetic using your assumptions. No personalized recommendation, eligibility decision or market forecast.

Let’s work it out

Enter your numbers. We’ll show the working.

Use one currency throughout; the country selector changes display only.
Use one currency throughout; the country selector changes display only.
Use one currency throughout; the country selector changes display only.
Use one currency throughout; the country selector changes display only.

How to use this calculator

  1. Use unrestricted cash currently available, excluding uncollected invoices and unapproved funding.
  2. Choose the reserve you do not want to consume, no greater than available cash.
  3. Enter monthly cash receipts and payments; rerun with slower collections or higher costs.

The formula

Usable cash = cash − reserve; net burn = monthly payments − receipts; runway = usable cash ÷ positive net burn

A positive net burn consumes cash. Dividing cash above your reserve by that burn estimates time until the reserve is reached. If receipts equal or exceed payments, the constant-flow model has no ongoing depletion; it does not prove that individual bills can be paid on time.

PUTTING IT INTO PRACTICE

A worked example

With 50,000 cash, a 10,000 reserve, 8,000 monthly receipts and 13,000 payments, usable cash is 40,000 and net burn is 5,000. The reserve is reached after 8 modeled months.

How to interpret your result

Fractional months describe an arithmetic buffer. Review a dated cash forecast before using the result for hiring or spending decisions; a large bill can arrive before average receipts.

Assumptions and limitations

Cash flows remain constant and are spread evenly through each month. The reserve is a planning boundary selected by you, not a regulatory requirement.

No daily payment calendar, seasonal changes, financing approvals, tax calculation or insolvency assessment. Enter actual expected cash payments including taxes and debt service when applicable.

Common questions

Is revenue the same as receipts?

Not necessarily. Use cash expected to arrive, rather than an invoice total that may be collected later.

What if net burn is zero?

The calculator reports no ongoing depletion under the entered assumptions. Cash timing still matters, especially when the reserve equals the balance.

Can runway be zero?

Yes. When cash equals the protected reserve and net burn is positive, there is no buffer above the reserve.

Does it calculate a closure date?

No. Months are a steady-flow estimate, not a specific calendar deadline or a solvency opinion.

Sources

For informational purposes only. This calculator does not provide financial, tax, legal, or investment advice. Results are estimates.