Cash runway: Estimating How Long Available Cash Could Last
Runway divides available cash by positive monthly net burn. It converts a funding balance into a rough planning horizon.
Use the Cash runway Calculator to enter your own figures and compare the result with the worked example below.
Cash runway formula
Runway in months = Available cash ÷ Monthly net burn
Worked example
| Item | Example value |
|---|---|
| Available cash | 60000 USD |
| Monthly net burn | 5000 USD |
| Cash runway | 12 |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Constant burn is an assumption. Hiring, seasonal receipts and one-time commitments can shorten or lengthen the actual runway.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see SEC: Understanding financial statements. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.