Cash Runway Calculator

How Long Can You Last?

Cash runway measures how long your money will sustain spending before running out—critical for businesses managing burn rate, freelancers between clients, or anyone living on savings. The calculator projects when cash depletes based on balance, income, and expenses.

Knowing your runway enables proactive decisions: when to seek funding, cut expenses, or find new income. Running out of cash is the end of the road; runway awareness prevents reaching that point unprepared.

Know your expiration date.

Basic Runway Calculation

Simple runway:

Cash Runway = Cash Balance / Monthly Net Burn

Cash balance: $50,000 Monthly expenses: $8,000 Monthly income: $2,000 Net burn: $6,000

Runway = $50,000 / $6,000 = 8.3 months

Burn Rate Concepts

Gross burn: Total monthly expenses Net burn: Expenses minus income Runway: Cash divided by net burn

$12,000 gross burn, $4,000 income: Net burn = $8,000 $100,000 cash / $8,000 = 12.5 months runway

Business Runway Example

Startup cash management:

Cash on hand: $750,000 Monthly expenses: $95,000 Monthly revenue: $35,000 Net burn: $60,000

Runway = $750,000 / $60,000 = 12.5 months

When to raise funds: Typically 6-9 months before runway ends.

Personal Emergency Runway

Job loss scenario:

Savings: $30,000 Monthly expenses: $4,500 Unemployment benefits: $1,800 Side income: $500 Net draw: $2,200

Runway = $30,000 / $2,200 = 13.6 months

Freelancer Between Projects

Irregular income management:

Cash reserves: $25,000 Monthly expenses: $5,500 Expected income: $0 (between projects)

Runway = $25,000 / $5,500 = 4.5 months

Four months to find next project before reserves deplete.

Retirement Runway

Retirement savings duration:

Portfolio: $800,000 Annual expenses: $48,000 Social Security: $24,000 Annual draw: $24,000

Simple runway = $800,000 / $24,000 = 33 years

(Investment returns extend this significantly.)

Variable Expense Impact

Runway changes with spending cuts:

Current: $50,000 cash, $6,000/month burn = 8.3 months Cut to $5,000: $50,000 / $5,000 = 10 months Cut to $4,000: $50,000 / $4,000 = 12.5 months

Each $1,000 reduction extends runway significantly.

Revenue Impact on Runway

Startup revenue scenarios:

Current: $750K cash, $60K net burn = 12.5 months

If revenue grows $10K/month: Month 3 net burn: $30K Average burn: $45K Extended runway: ~17 months

Growing revenue stretches runway faster than linear.

Runway Extension Strategies

Ways to extend runway:

Cut expenses: Immediate impact Increase revenue: Growing impact over time Raise funds: Add to cash balance Delay payments: Temporary extension Accelerate receivables: Improve cash timing

Warning Thresholds

Runway alert levels:

12+ months: Comfortable 6-12 months: Monitor closely 3-6 months: Action required Under 3 months: Critical situation

React before crisis, not during.

Burn Rate Trends

Track burn rate changes:

Month 1: $55,000 Month 2: $62,000 Month 3: $58,000 Average: $58,333

Trend: Burn rate increasing—runway shrinking faster than simple calculation.

Multiple Scenario Planning

Model different futures:

Plan for pessimistic; hope for optimistic.

Zero Cash Date

Identify the specific date:

Today: January 1 Cash: $50,000 Burn: $6,250/month

Zero cash date: September 1 (8 months)

Mark calendar, work backward for action deadlines.

Minimum Viable Runway

How much runway do you need?

Job search: 6-12 months Startup funding: 18-24 months Business turnaround: 12-18 months Freelance buffer: 3-6 months

Industry and situation determine minimum.

Cash Flow Timing

Runway affected by timing:

Monthly expenses: $6,000 Quarterly insurance: $3,000 Annual tax payment: $12,000

Some months burn higher—account for irregular expenses.

Including Investment Returns

More accurate for longer periods:

Cash/investments: $500,000 Monthly draw: $3,500 Expected return: 6% annually (0.5%/month)

With returns, runway extends indefinitely if draw rate sustainable.

Recession Planning

Stress test your runway:

Normal case: 12 months runway If expenses increase 20%: 10 months If income drops 50%: 8 months Both: 6.7 months

Recession-proof runway: 18-24 months minimum.

Using the Calculator

Enter cash balance, monthly income, and monthly expenses. Optionally add expected changes to income or expenses over time.

The calculator shows:

• Current runway (months/years)
• Zero cash date
• Runway sensitivity to expense changes
• Runway sensitivity to income changes
• Monthly cash balance projection

Model scenarios: What if I cut expenses by 20%? When must I find new income? How much must I raise to achieve 18-month runway?

Use results to plan finances proactively and avoid running out of cash unexpectedly.

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Cash runway reveals how long your money lasts—essential knowledge for businesses managing burn, freelancers between gigs, or anyone living on savings. The calculator projects your zero-cash date and shows how changes to spending or income affect survival time. Knowing your runway enables action while you still have options.