When to use this calculator
Use net cash leaving the business after receipts, rather than total expenses alone, when estimating runway.
Explore the work & operations calculators for other questions in this topic. For a related calculation, use the Cycle Time Calculator: Measure average time per completed production unit.
PUTTING IT INTO PRACTICE
Cash Runway: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Available cash | 120,000 |
| Net monthly cash burn | 20,000 |
| Result | 6 months |
- Check the input labels and enter the example values above.
- Apply the relationship: Runway = available cash/net monthly burn.
- The result is 6 months, rounded for display.
How to interpret your result
Does not model irregular receipts, financing, restricted cash or future changes in burn.
Keep output and labour measures tied to the same period. Capacity is an assumption that may depend on staffing and process conditions. Average productivity and turnover can conceal seasonal peaks and bottlenecks.
Frequently asked questions
Does more output per hour always mean better performance?
Not by itself. Quality, rework, safety, cost and constraints can change the practical value of a productivity increase.
When is the cash runway calculator useful?
Use net cash leaving the business after receipts, rather than total expenses alone, when estimating runway.
How do I use the cash runway calculator?
Enter available cash, net monthly cash burn. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Runway = available cash/net monthly burn.
What should I check before using the result?
Does not model irregular receipts, financing, restricted cash or future changes in burn.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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