Cash runway calculator

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Results are illustrative, not a quote, tax computation or credit decision.

How to interpret the result

A runway figure is only as useful as the burn number behind it. Because it's calculated from a single average monthly burn, it works best as a snapshot rather than a forecast — if income or costs are seasonal, the true picture will vary month to month rather than draining at a constant pace. Treat the headline number as an indicator of direction and urgency, not a fixed countdown.

Runway sitting on the shorter side doesn't automatically mean trouble; it depends on what's driving the burn. A company deliberately investing cash into stock, hiring or a growth push will show a shorter runway than one simply struggling to collect payment, even though the underlying health of the two businesses is very different. Reading the result alongside the cash conversion cycle helps separate timing issues from genuine burn.

Limitations and good practice

This tool assumes the net burn figure you enter stays constant, which real trading rarely does. One-off costs, a late customer payment, or a seasonal sales spike can all move the actual number well away from the average used here. It's worth re-running the calculation regularly with updated figures rather than treating a single result as fixed.

The output is an illustration for planning purposes only — it isn't a cash flow forecast, a credit assessment or an offer of finance. For a fuller view of short-term liquidity, pair it with the cash ratio and days-cash-on-hand checks, and treat all three as inputs into a wider conversation with your accountant or finance team rather than a standalone verdict on the business.