Cash runway calculator

How to calculate cash runway

Cash runway is how many months the cash you hold covers if money keeps coming in and going out the way it has been. Take what goes out in an average month, subtract what comes in, and divide the cash in your bank by the difference.

Runway in months = cash in the bank ÷ (money out each month − money in each month)

Say David runs a design studio with $48,000 in the bank. In an average month $21,000 comes in and $27,000 goes out, so the studio spends $6,000 more than it brings in. $48,000 ÷ $6,000 = 8 months. That is the example the calculator above opens on.

Use an average of at least two or three months rather than one: a single month with a large annual bill or a late payment makes the figure swing.

What is the difference between gross burn and net burn?

Gross burn is everything that goes out in a month. Net burn is what goes out minus what comes in. Runway divides your cash by net burn, because the money coming in pays for part of what goes out.

What if more comes in than goes out?

Then your cash grows each month and there is no runway to count down. The calculator shows how much your cash grows by instead.

Which accounts count as cash?

Checking and savings accounts you can spend from. A credit card balance or a loan is money owed rather than cash held, so it belongs in what goes out each month, not in the cash figure.

How does Even Margin show runway?

Connect your bank accounts and Even Margin works out your months of cover from the cash in your checking and savings accounts and your average monthly net spending, once it has at least two months of history. It updates as new transactions arrive.

Good to know

• Nothing you type here leaves your browser, and nothing is saved.
• A plan, not a promise: real months bring bills and payments at their own pace.