Cash Runway & Burn Rate Calculator
How many months of cash does your business really have? Enter three numbers to see your monthly net burn, your runway, and the approximate month cash runs out. Free, instant, no signup.
3-minute application · No credit impact to check options · Offers within hours
Calculate Your Burn Rate and Cash Runway
Three inputs straight from your bank statements, instant answer: nothing submitted, nothing stored.
What is a burn rate?
Burn rate is the speed at which a business spends down its cash. Gross burn is total monthly spending; net burn is monthly money out minus monthly money in. If $45,000 leaves your account each month and $35,000 comes in, your net burn is $10,000: the amount your balance shrinks every month.
How do you calculate cash runway?
Divide cash on hand by monthly net burn. The formula is runway in months = cash on hand / (monthly money out - monthly money in). A business holding $48,000 with a $10,000 net burn has 4.8 months of runway. If money in exceeds money out, burn is negative and cash is growing, not shrinking.
What is a good cash runway for a small business?
There is no universal number, so this calculator uses qualitative tiers: 6 or more months is comfortable, 3 to 6 months means plan ahead, and under 3 months means act now. The right cushion depends on your seasonality, customer concentration, and how quickly you could cut costs if revenue slowed.
How can you extend your cash runway?
Pull three levers: cut spending that does not produce revenue, collect faster by invoicing promptly and chasing receivables, and bridge the gap with working capital before the balance turns critical. Waiting shrinks your options: funders read the same bank statements you do, and a business with months of cushion left qualifies on better footing.
Start with our guide to what working capital is and how to strengthen it, and see what an underwriter reads in your last 4 months of bank statements. If the math above says weeks rather than months, read how fast same-day funding actually moves: the application takes under 3 minutes, checking your options never affects your credit, and offers arrive within hours.
What does a worked cash runway example look like?
Take the calculator’s defaults: $48,000 cash on hand, $35,000 average monthly money in, and $45,000 average monthly money out. Net burn is $45,000 minus $35,000, or $10,000 a month. Runway is $48,000 divided by $10,000, which equals 4.8 months, so cash runs out roughly five months from today.
The math, step by step:
- Net burn = $45,000 - $35,000 = $10,000 per month
- Runway = $48,000 / $10,000 = 4.8 months
- Run-out month = today + 4.8 months (about 146 days), shown as a calendar month
Three Ways Capital Extends a Runway
Cutting costs is lever one. When the timeline is tighter than the fix, these structures buy the months you need.
A Line for the Dips
A revolving line of credit sits ready so a slow month draws on approved capital instead of your cash cushion, and you pay based on what you use.
Explore lines of credit →Collect Faster with Factoring
Unpaid invoices are money you’ve earned but can’t spend. Factoring converts receivables into working cash, so money in speeds up without new debt on the balance sheet.
See how factoring works →A Working Capital Bridge
Same-day working capital covers payroll, rent, and inventory while you fix the burn, with offers within hours and no credit impact to check your options.
Understand working capital →Not sure which fits? Compare funding structures side by side, estimate payments with the business funding calculator, or browse every free tool on the business calculators hub.
Cash Runway Calculator FAQs
What is cash runway?
Cash runway is how long your business can keep operating before cash on hand runs out, assuming income and spending stay at their current averages. It is measured in months: cash on hand divided by monthly net burn. A business with $48,000 in the bank and a $10,000 monthly net burn has 4.8 months of runway.
What is the difference between gross burn and net burn?
Gross burn is everything your business spends in a month: payroll, rent, inventory, debt payments. Net burn subtracts the money that comes in, so it shows how much your bank balance actually shrinks. This calculator uses net burn (money out minus money in) because runway depends on the gap, not on raw spending.
How can I extend my cash runway?
Three levers work together: cut spending that does not drive revenue, collect receivables faster so money in rises, and bridge the gap with outside capital before the balance gets critical. Our working capital guide explains the cushion side, and invoice factoring can turn unpaid invoices into usable cash.
What does it mean if my burn rate is negative?
A negative net burn means money in exceeds money out: you are cash-flow positive and your bank balance is growing at current averages. The calculator flags this state instead of showing a run-out date. It is still worth rechecking monthly, because one seasonal dip or a big one-time expense can flip the sign.
How accurate is the projected run-out month?
It is an approximation that assumes your recent monthly averages continue unchanged. Real cash flow is lumpy: seasonality, one-time expenses, and slow-paying customers all move the date. Treat the projection as a planning horizon, not a deadline, and rerun the numbers whenever a month closes meaningfully above or below your average.
Is this cash runway calculator an offer or financial advice?
No. It is a free illustration that does simple arithmetic on the numbers you enter, and nothing is submitted or stored when you use it. For decisions about your business, confirm figures with your accountant. If a funding bridge makes sense, applying takes under 3 minutes and checking your options never affects your credit.
Related Tools & Guides
Working Capital Calculator
Calculate net working capital and your current ratio.
Open the tool →Break-Even Calculator
Find the units and revenue that cover your costs.
Open the tool →Employee Cost Calculator
See the fully loaded cost of a hire.
Open the tool →What Is Working Capital
The formula and a healthy ratio range explained.
Read the guide →Business Line of Credit
Draw what you need, pay on what you use.
Read the guide →How Fast Can a Business Get Funded
The honest hour-by-hour funding timeline.
Read the guide →Want Your Runway Numbers in Your Inbox?
We’ll email you the exact inputs and results you just ran, so you have them when you’re planning with your team or accountant. A real advisor may follow up once by email: no spam, no drip campaign.
Don’t Let the Clock Decide for You
If your runway is shorter than your plan, check your funding options in 3 minutes: free, with no impact on your credit score.
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