← Back to Free Tools
Cash Runway Calculator
How many months can your business operate before cash runs out? Find out in 60 seconds.
What Is Cash Runway?
Cash runway is the number of months a business can continue operating before its cash reserves are depleted. It is calculated by dividing total cash on hand by the monthly net burn rate. A business with $120,000 in the bank burning $10,000 per month has 12 months of runway.
How Much Runway Should You Have?
Most financial advisors recommend maintaining at least 6 months of runway. 12 months or more is considered healthy for established businesses. Less than 3 months requires immediate action — cut costs, accelerate revenue, or secure additional financing.