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Small Business · Planning

Cash Runway

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Use cash runway to see how many months your business can keep operating before cash runs out at the current monthly burn.

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Interactive workbench

Startup runway

Cash on HandMonthly Burn

$120,000 cash at $15,000 burn per month is 8 months of runway.

Step 1 of 3

Variables and units

  • Cash on Hand

    Total cash currently available.

    currency

  • Monthly Burn

    Net cash spent per month.

    currency

Common mistakes

  • Using gross spend instead of net burn.
  • Ignoring upcoming one-time costs.

Step-by-step example

Startup runway

  1. 1. Start with the example inputs

    • Cash on Hand$120,000
    • Monthly Burn$15,000

  2. 2. Apply the formula

    Cash on HandMonthly Burn

  3. 3. Run the numbers

    8

    $120,000 cash at $15,000 burn per month is 8 months of runway.

What this result means

8 months is how long the cash lasts at today's burn rate. Many advisors treat six months as the line where raising, cutting, or collecting receivables should already be underway — runway decisions made early are far cheaper than ones the bank balance forces.