Cash Runway Calculator
Estimate runway from cash balance, revenue, gross margin, and operating expenses (optionally with revenue growth).
Runway answers a simple question: how many months can you operate before cash hits zero at your current net burn-
This calculator estimates net burn from revenue, gross margin, and operating expenses, and optionally simulates runway with a monthly revenue growth assumption.
Prefer an explanation- Read the guide.
Cash runway: how to estimate burn, break-even, and survival timeRunway and burn: gross vs net burn, working capital, and cash leversCash conversion cycle: turn working capital into runwayUnit economics hub: CAC, LTV, payback, and runway (a practical stack)
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If collections lag, adjust this closer to cash collected per month.
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Used to estimate required revenue for the target runway.
Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
5 months
- Cash balance
- $500,000
- Monthly revenue (cash-in proxy)
- $150,000
- Gross margin
- 80%
- Monthly operating expenses (cash out)
- $220,000
- Monthly revenue growth (optional)
- 0%
- Months to simulate
- 24
- Target runway (months) (optional)
- 0
How to calculate
- Enter your current cash balance.
- Enter monthly revenue and gross margin (to estimate gross profit).
- Enter monthly operating expenses (cash basis).
- Optionally add a monthly revenue growth rate to model improving burn.
Formula
Net burn = operating expenses - (revenue * gross margin); Runway = cash balance / net burn (if net burn > 0)
- Monthly revenue is used as a proxy for cash inflow (collections timing can differ).
- Gross margin is treated as a simple % of revenue for gross profit.
- Operating expenses are treated as cash outflows and constant in the simulation.
FAQ
Why is runway different from profitability-
Runway is about cash. You can be profitable on an accounting basis but still have cash issues due to collections timing, prepayments, capex, or working capital changes.
Should I include non-recurring revenue-
If it reliably produces cash inflows (services, one-time fees), you can include it, but label it clearly. For SaaS planning, recurring revenue is often the most stable input.
Common mistakes
- Using booked revenue instead of collected cash (AR timing matters).
- Using accounting expenses when cash outflows differ (capex, prepaids, deferred revenue).
- Assuming growth without accounting for growth costs (sales/marketing, infra).
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Quick checks
- Use consistent time units (monthly vs annual) when entering rates and cash flows.
- Run a sensitivity check on the input that drives the result most (often discount rate or growth).
- Treat the output as a decision aid, not a prediction; validate assumptions with reality.