Written by MetricKit EditorialReviewed by MetricKit Editorial ReviewUpdated 2026-05-09
How MetricKit maintains this page
Review the methodology behind the formulas, see how content is reviewed, and use the contact page for questions, feedback, or corrections.
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)
$
If collections lag, adjust this closer to cash collected per month.
$
%
$
%
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).
Related calculators
Finance
Deferred Revenue Rollforward Calculator
Bridge billings to recognized revenue by rolling deferred revenue forward for a period.
Finance
Break-even Revenue Calculator
Estimate the revenue needed to break even given fixed costs and gross margin.
Finance
NPV Calculator
Calculate net present value (NPV) from initial investment, annual cash flow, years, and discount rate.
Finance
IRR Calculator
Estimate internal rate of return (IRR) for an investment using yearly cash flows.
Finance
Discounted Payback Period Calculator
Estimate discounted payback period using a discount rate (and compare to simple payback).
Finance
Break-even Pricing Calculator
Compute contribution margin, break-even units, and profit at a given volume based on price and variable costs.
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.