Business runway calculator
Enter your cash balance, monthly expenses, and current revenue to calculate net burn and see how long your business can operate without additional funding or revenue growth.
Runway is calculated from net burn (expenses − revenue), not gross burn. The scenario table shows how much each level of expense cut or revenue increase extends your timeline.
Runway calculator
Current finances
Runway
Scenario: expense cuts
To extend runway
How this tool works
Net burn = monthly expenses − monthly revenue. Runway = cash on hand ÷ net burn. The scenario table recalculates runway after applying a percentage reduction to gross expenses, with revenue held constant. The extension table shows how much monthly change (either increased revenue or reduced expenses) is needed to reach 12, 18, and 24 months.
About this tool
Enter your current cash balance, monthly expenses, and monthly revenue to calculate your net burn rate and runway in months. Scenario tables show how expense reductions or revenue increases extend runway, and how much change is needed to reach 12, 18, or 24 months of coverage.
Frequently asked questions
What is the difference between gross burn and net burn?
Gross burn is total monthly expenses. Net burn is monthly expenses minus monthly revenue — the actual cash you consume each month. Runway is calculated from net burn: a company spending $50k/month with $30k in revenue has a $20k net burn, not $50k.
What is a healthy runway?
The conventional benchmark is 12–18 months minimum. Below 6 months is critical — most fundraising and cost-cutting decisions take 3–6 months to execute. Many investors expect 18–24 months post-investment before the next round.
What counts as cash on hand?
Use immediately accessible cash and cash equivalents — bank balances, short-term deposits, and committed credit lines you can draw on. Exclude receivables that haven't been collected, equity that hasn't closed, or assets that would take months to liquidate.