See how long current cash may last under today’s assumptions.

Runway is a scenario, not a promise.

Cash runway estimates how long available cash could support the business when monthly cash outflows are greater than monthly inflows. It is most useful as a simple operating scenario: keep the assumptions visible, change one variable at a time, and see how quickly the result changes.

Start with cash that is actually available for operations. Then enter a reasonable monthly inflow assumption and the monthly cash outflows you expect under the same scenario. If outflows exceed inflows, the calculator divides available cash by the monthly cash burn. If inflows are equal to or greater than outflows, it reports that the current assumptions do not show a monthly burn.

Example

Suppose the business has $50,000 of available cash, receives $80,000 in an average month, and pays out $90,000. The modeled burn is $10,000 per month, which produces an estimated five months of runway. If monthly inflows improve to $85,000 with everything else unchanged, the burn falls to $5,000 and the modeled runway doubles to ten months.

Use multiple scenarios

• Base case: your most supportable current assumptions.
• Downside case: slower collections, lower sales, or higher expenses.
• Improvement case: cost reductions, better collections, or additional recurring revenue.

This simplified model does not know when customers actually pay, when payroll clears, whether cash is restricted, or whether one-time obligations are coming due. For short-term decisions, pair the runway estimate with a weekly cash forecast and your actual accounts receivable and payable schedule.