Quick answer
How do you calculate Cash Runway?
Use Cash runway = Cash balance / Monthly net burn. Enter the matching values above to calculate the result instantly.
What it measures
Understanding Cash Runway
Estimate how many months current cash can fund a constant monthly net burn. Runway turns a cash position into time, making hiring, fundraising, cost, and growth decisions easier to sequence.
Interpretation
What the result means
The result is the number of months the entered balance could support the entered constant net burn.
Action
How to use it
Build a monthly cash forecast and run downside cases for slower collections, weaker growth, hiring, debt service, and fundraising delays.
Limits
What it leaves out
Burn rarely stays constant, and restricted cash, annual payments, working capital, taxes, financing, and one-time costs may change the actual date.
The math
Cash Runway formula
Worked example
Example calculation
- Calculation
- $1,800,000 / $150,000
- Result
- 12 months of runway
Step by step
How to use this calculator
- 1Enter cash balance, monthly net burn.
- 2Keep every input on the same time period and measurement basis.
- 3Review the result, then change one assumption at a time to test scenarios.
Decision support
When this calculator is useful
- Startup planning
- Fundraising timing
- Downside scenarios
Common questions
Frequently asked questions
Which inputs should I use for Cash Runway?
Use cash balance, monthly net burn, measured from the same source and period. Include only values that match the definitions shown beside each field.
Why might two Cash Runway calculations differ?
The systems or accounting policies may define cash balance, monthly net burn differently. Compare the time period, scope, source, and treatment of exceptional items before comparing results.
How often should I recalculate Cash Runway?
Recalculate when any input changes materially and on the same reporting cadence used for the decision. Save the source and date of each input so the trend remains comparable.
Can I use Cash Runway by itself?
No single metric captures the full decision. Use the result with the related measures, assumptions, and limitations shown on this page.
Calculation reviewed: 2026-06-18. CalcPilot uses the formula shown above and tests representative values during the production build. See our methodology and correction policy.
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