Runway Calculator
Runway is the number of months a company can keep operating before running out of cash, given its current cash balance and net burn rate.
Runway (months) = Cash Balance / Monthly Net Burn | Variable | Meaning |
|---|---|
Cash Balance | Cash and cash equivalents currently in the bank. |
Monthly Net Burn | Cash spent per month net of cash collected. |
Worked example
- Cash Balance
- $1,200,000
- Monthly Net Burn
- $100,000
- → Runway (months)
- 12
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Runway Formula
Runway (months) = Cash Balance / Monthly Net Burn | Variable | Meaning |
|---|---|
Cash Balance | Cash and cash equivalents currently in the bank. |
Monthly Net Burn | Cash spent per month net of cash collected. |
How to Calculate Runway
Worked example
- Cash Balance
- $1,200,000
- Monthly Net Burn
- $100,000
- → Runway (months)
- 12
Full definition, benchmarks, and common mistakes live on the Runway glossary page ; quick answers are in the Runway FAQ .