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Free cash runway calculator

Know how much decision time your cash actually buys.

Measure the months before cash reaches a protected reserve—not merely zero. Then compare the base case with lower collections and higher outflows before the business is forced to react.

Quick answer

Runway ends at the reserve floor you refuse to spend through.

Available cash above that floor funds monthly net cash burn and known one-time events. A stress case matters because a plan that works only when every collection and expense lands perfectly is not a resilient plan.

Monthly net cash flow = cash receipts − cash outflows

Runway = usable cash above reserve ÷ monthly cash burn, adjusted for timed events

Reviewed August 15, 2026

Step 1

Build the month-end cash picture

Cash available and protected
$

Cash currently available to the business. Exclude receivables, unsigned sales, and credit that is not already drawn.

$

The minimum balance that triggers action before the bank account reaches zero.

Typical recurring month
$

Cash expected to be collected during a typical month—not invoices issued or revenue booked but still unpaid.

$

Cash actually paid in a typical month, including operating costs, debt payments, tax, inventory, owner draws, and other recurring uses of cash.

Known one-time cash events
$

A committed, non-recurring cash receipt. Use zero when timing or amount is uncertain.

month

Month 1 is the next month. The model applies this event at that month end.

$

A known non-recurring use of cash such as tax, equipment, debt payoff, deposit, or inventory build.

month

Month 1 is the next month. The model applies this event at that month end.

Stress test
%

Reduce recurring receipts without changing the known one-time cash events.

%

Increase recurring cash outflows to test cost pressure or forecast error.

This is a month-end planning model with constant recurring receipts and outflows. It does not model daily timing, seasonality, receivable aging, inventory cycles, financing availability, or tax rules. Use cash movements—not accounting revenue and expense totals.

Understand this decisionHow long will your business cash last?Protect a reserve, place one-time cash events in the right month, and turn the stressed breach date into action triggers.Read the guide →

Cash is not profit

A profitable business can still run out of money.

Revenue can be recorded before customers pay, while inventory, payroll, debt principal, tax, equipment, and owner withdrawals can consume cash before they appear the same way in profit. Runway therefore starts with actual cash movements and timing.

The reserve floor creates an earlier decision trigger. Reaching zero leaves no room for collection delays, mistakes, or options; reaching a protected floor should force a concrete response plan.

Review the exact formulas →

Make the runway credible

Pressure-test the cash inputs

Why use cash receipts instead of revenue?

Runway measures liquidity. Use money expected to arrive in the bank during the month, not invoices issued, sales booked, or receivables that customers have not paid.

What belongs in monthly cash outflows?

Include cash paid for payroll, rent, vendors, subscriptions, inventory, tax, debt principal and interest, owner draws, recurring equipment payments, and other normal monthly uses of cash. Avoid counting a known one-time payment twice.

How should I choose the reserve floor?

Choose the balance that should trigger action before cash reaches zero. Consider payroll, tax, debt covenants, vendor commitments, collection volatility, and the time required to reduce costs or secure financing. The right floor is a policy decision, not a universal percentage.

Should available credit count as starting cash?

No. Starting cash should already be available. A committed, undrawn credit facility can be evaluated separately because borrowing adds interest, repayment obligations, conditions, and lender risk. Unsigned financing is not runway.

Why does the calculator use month-end periods?

The model is designed for a fast planning decision, not daily treasury forecasting. A month can still contain a shortfall even when its ending balance looks safe, so businesses with tight timing should build a weekly or daily cash-flow forecast.

What does “no finite limit” really mean?

It means recurring cash flow is flat or positive and the known events entered do not breach the reserve. It does not guarantee safety. Seasonality, late payments, growth investment, tax, inventory, debt, or an omitted cash event can create a future shortfall.