Cash Runway Calculator

Estimate monthly net burn and cash runway from cash balance, recurring outflows and recurring inflows.

Estimate cash runway

Enter current cash plus average monthly cash inflows and outflows.

Current cash balance

Average monthly cash outflow

Average monthly cash inflow

Monthly net burn—

Estimated runway—

Runway interpretation—

How the calculation works

Monthly net burn = average monthly cash outflow − average monthly cash inflow. When net burn is positive, cash runway = current cash ÷ monthly net burn.

How to use the result

Use runway for scenario planning rather than as a fixed deadline. Model conservative, expected and growth scenarios because revenue collections, hiring, taxes and one-time payments can change cash movement quickly.

Assumptions and limitations

The calculation assumes constant monthly averages and ignores timing within each month, restricted cash, debt facilities, minimum cash buffers and one-time receipts or expenses. If inflow equals or exceeds outflow, there is no finite runway under this simple model.

Example

With 12 lakh cash, 4 lakh monthly outflow and 2.5 lakh inflow, net burn is 1.5 lakh and estimated runway is eight months.

Frequently asked questions

What if monthly inflow is higher than outflow?

The model shows no finite burn runway because cash is not declining under the entered averages.

Should accounts receivable count as cash?

No. Use cash that is actually available; future receivables belong in inflow assumptions when expected to be collected.

Does runway include a safety buffer?

No. If you need a minimum cash reserve, subtract it from the usable cash balance before calculating.

Why should I run scenarios?

Small changes in hiring, collections or large expenses can materially change runway, so one average case can be misleading.