Cash Runway Calculator

Lifetime

How many months you can keep the lights on without any new sales.

What is the Cash Runway Calculator?

Cash runway is the single most important survival number for a small business. It answers: 'if no money comes in tomorrow, how long can I pay everyone?' Knowing it changes the conversations you have about hiring, leasing, marketing spend, and whether you actually need that contract you've been chasing.

Operator Tools' Cash Runway Calculator works it out from your current cash balance, your monthly burn rate (the gap between fixed costs and gross profit on existing sales), and your safety threshold — the cash you want to keep on hand even at the bottom.

When to use it

  • Monthly, as part of your financial check-in.
  • Before signing anything with a recurring commitment (lease, software, hire).
  • When a major customer signals they're slowing down or leaving.
  • Before launching a big initiative that will burn cash before it returns any.

The formula

Runway = (current cash − safety threshold) ÷ monthly burn. Burn is the net monthly outflow: total fixed costs minus the gross profit your existing sales reliably generate. Once burn is positive (you're losing money each month), runway is finite; if burn is zero or negative (you're profitable), runway is effectively unlimited.

Worked example

Current cash balance
€40,000
Safety threshold
€5,000
Monthly fixed costs
€15,000
Gross profit on current sales
€10,000/mo
Result

7 months of runway

Burn = €15,000 − €10,000 = €5,000/mo. Usable cash = €40,000 − €5,000 = €35,000. €35,000 ÷ €5,000 = 7 months.

How to use it

  1. 1

    Enter your current cash balance (cash in the bank, today)

  2. 2

    Enter your safety threshold

    The minimum cash you want to keep on hand even at the bottom — for an emergency, a tax bill, payroll for one cycle.

  3. 3

    Enter your monthly fixed costs

  4. 4

    Enter the gross profit your existing sales reliably bring in

    Be honest — the number you can count on, not the optimistic forecast.

  5. 5

    Read your runway in months, plus the risk colour code and recommendation

Common questions

What's a healthy amount of runway?+

Most advisors say 3 months is the absolute minimum, 6 months is comfortable, and 12+ months is the level at which you can make calm strategic decisions. Below 3 months, every operational decision becomes about staying alive.

Should I include outstanding invoices in my cash balance?+

No — only count cash actually in the bank. Invoices outstanding aren't cash until they're paid, and overdue invoices in particular are a leading indicator of cash trouble, not a source of cash.

How is this different from a cash flow forecast?+

A cash flow forecast projects exact ins and outs over time, week by week. Cash runway is a single number that summarises 'how long do I have at my current rate'. Use runway monthly for a fast pulse check; use a forecast when you need to plan around specific upcoming bills.

Is the Cash Runway Calculator free?+

It's a paid tool, included in Founding Lifetime Access (€99 one time, no subscription). The free tier covers the Business Health Score, Profit Margin Calculator, and Break-Even Calculator.

Ready to try it?

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