Burn Rate and Runway Calculator
How many months the cash lasts at the current rate of spending.
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Quick answer
Estimate how long current cash can last
The calculator subtracts monthly revenue from monthly expenses to find net burn. When net burn is positive, dividing the cash balance by that monthly amount estimates the remaining runway in months.
Use this calculator when
- Checking runway at the current spending level
- Testing how a cost reduction changes the cash horizon
- Estimating the monthly revenue gap required to break even
How to read the result
Runway is a static planning estimate. It assumes cash, revenue and expenses remain constant; one-off payments, seasonal revenue, receivables, fundraising and changing costs can materially alter the real date cash runs out.
- Use recurring monthly figures on the same accounting basis
- Model known one-off cash movements separately
Method
How it works
Monthly expenses minus monthly revenue gives net burn. Cash divided by positive net burn estimates how many months the current cash balance can last.
If revenue equals or exceeds expenses, net burn is zero or negative and the model treats runway as unlimited. The estimate assumes cash, revenue and expenses remain constant.
Common questions
Frequently asked questions
What is the difference between gross burn and net burn?
Gross burn is monthly expenses, while net burn subtracts monthly revenue from those expenses.
Why is runway unlimited when revenue exceeds expenses?
The business is not consuming its cash balance under the entered monthly figures.
Does runway include future fundraising or changing costs?
No. It is a static estimate using the current inputs only.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.