Cash Runway Calculator
If the work stopped today, how long would your cash last? See the months of runway left at your current burn — and the projected zero-cash date, so you know exactly when to act.
Written by Dorothy Ibrahim, 10+ years in banking & finance
Loading calculator…
How we calculate this
This calculator answers one question: at your current burn, how many months until the cash hits zero — and what calendar date that is. It works the same whether you are a business watching outflows against inflows or a freelancer asking "if the work stopped today, how long would my savings last?" — enter one net burn figure and your cash, and it divides the two, then translates the result into a projected zero-cash date, because a date on the calendar creates urgency in a way "4.0 months" does not. If your income covers your outflows, there is no burn and your runway is effectively unlimited.
The formulas
- Net monthly burn
- monthly outflows − monthly inflowsOr entered directly with the net-burn toggle. Zero or negative means cash-flow positive — no runway math applies.
- Runway (months)
- cash on hand ÷ net monthly burnShown to one decimal place.
- Projected zero-cash date
- the as-of date + runway monthsFractional months are converted at an average month length of about 30.44 days.
Worked example
- Say you hold $60,000 in cash, with $25,000 coming in and $40,000 going out each month.
- Net burn = $40,000 − $25,000 = $15,000 per month.
- Runway = $60,000 ÷ $15,000 = 4.0 months.
- From an as-of date of July 2, 2026, cash projects to zero around November 2, 2026.
- Four months lands in the 3–6 month "urgent" band — the rule-of-thumb guidance is to start financing conversations now, because SBA and bank facilities typically take 30–90 days to close.
Rates, benchmarks & sources
- Runway urgency bands: under 3 months critical, 3–6 months urgent, 6–12 months adequate, over 12 months comfortable. Heuristics, not lender standards. — Industry rule of thumb
- SBA and bank financing typically takes 30–90 days to close — the reason the 3–6 month band says to start conversations now. — Industry rule of thumb
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- It assumes your burn stays constant. If revenue is falling or costs are rising, the trailing number understates the problem — the Burn Rate calculator measures the trend.
- It is a straight-line average, so it cannot see seasonality or lumpy one-time payments; a business with a slow season can hit zero well before the projected date. The 12-Month Cash Flow calculator models that shape.
- The zero-cash date uses an average month length, so it is an approximation within a few days, not a payment schedule.
- It does not model any response — no cost cuts, no financing, no collections push. It shows what happens if nothing changes, which is exactly what makes it useful as a deadline.
Frequently asked questions
What counts as burn — is it my expenses or my cash outflows?
Cash outflows: everything that actually leaves the bank account in a month, including loan principal, owner draws, and inventory purchases that never show up as expenses on a profit-and-loss statement. Accrual expenses like depreciation do not touch cash and should be excluded. Runway is a bank-balance calculation, not an accounting one.
Why does the calculator show a date instead of just months?
"4 months of runway" is easy to file away; "cash hits zero on November 2" is a deadline. Since financing routinely takes 30–90 days to arrange (a rule of thumb, but a well-worn one), a date makes it obvious whether you still have time to respond — and the answer is often tighter than the month count feels.
How much runway is enough?
The bands this tool uses are rules of thumb: under 3 months is critical, 3–6 urgent, 6–12 adequate, and over 12 comfortable. Where your business should sit depends on how volatile revenue is and how fixed your costs are — a seasonal business needs to carry more into its slow season. The Business Emergency Fund calculator sizes a reserve on exactly those factors.
How much runway should a freelancer have?
More than a salaried employee, because freelance income is lumpy and unpredictable. A common target is 6–12 months of living expenses, versus the 3–6 months often cited for people with a steady paycheck. Even three months is a meaningful start; the goal is enough cushion that a slow quarter — or turning down bad-fit work — does not become a crisis. Knowing your bare-bones burn (essentials only) stretches the same savings much further, which is why the Freelance Burn Rate calculator separates full burn from essential burn.
What does "cash-flow positive" mean for my runway?
If monthly inflows meet or exceed outflows, your net burn is zero or negative — the balance grows instead of shrinking, so there is no zero-cash date to project and the tool reports unlimited runway. That holds only at the current numbers; a lost customer or a new fixed cost can flip you back to burning, so the figure is worth rechecking whenever the business changes.
Should I use last month’s numbers or an average?
An average of the last few months is usually more honest — a single month can be distorted by an annual insurance bill or one big receivable landing. The Burn Rate calculator on this site computes exactly that trailing average, along with whether burn is rising or falling, and feeds the same runway math.
Related calculators
themoneysheet provides educational estimates, not financial, tax, or legal advice. Figures use published rates and formulas current as of the date shown, but your situation may differ. Consult a qualified professional (CPA, attorney, or licensed advisor) before making financial decisions.