Righto
Download nowGet it for Mac

Cash runway calculator

Enter the cash you have now and an average month of money in and money out. See your monthly cash flow and how long the cash lasts.

Published

$
$

Payments from customers. Use the last three months to get an average.

$

Every payment: costs, loan payments, tax payments and what you pay yourself.

Your cash lasts

0

months

Cash flow each month

$0

Money in minus money out

To break even

$0

More money in each month

What is cash runway?

Runway is how long your business can keep paying its bills with the cash it has, if nothing changes. When money out is bigger than money in, the difference is your monthly burn. Divide your cash by the burn and you get the number of months left.

Profit is not cash

A business can show a profit and still run out of money. Customers pay late, you buy equipment up front, you pay quarterly taxes and loans. Cash flow counts the money that really moves in and out of the bank, so it is the number that tells you if you can pay next month's bills.

How to read the result

  • Less than 3 months: act now. Collect what you are owed, cut costs, and talk to your bank before you need to.
  • 3 to 6 months: plan. Decide which costs you would cut first and when.
  • More than 6 months, or growing: a good cushion. Keep a reserve for taxes and slow months.

Ways to make cash last longer

  1. Ask customers for deposits, and follow up unpaid bills quickly.
  2. Cancel subscriptions and services you do not use.
  3. Ask suppliers for longer payment terms.
  4. Set money aside for your estimated tax payments so they are not a surprise.

Get the averages from your bank

Add up the money in and out of your business account for the last three months and divide by three. Righto, the free accounting app for Mac, imports your bank statements and shows these totals for you.

Frequently asked questions

How do I work out cash runway?

Take the cash you have, and divide it by the amount you lose each month (money out minus money in). $25,000 of cash with a $2,500 monthly loss lasts 10 months.

What is burn rate?

The amount of cash a business uses up each month when it spends more than it takes in.

How many months of runway should a small business have?

Many advisers suggest three to six months of costs as a reserve. Seasonal businesses may want more, to get through the quiet months.

Should I include taxes and loan payments?

Yes. Runway is about cash, so count every payment that leaves the account, including loan payments, estimated taxes and what you pay yourself.

What is the difference between cash flow and profit?

Profit counts income when it is earned and costs when they are incurred (on the accrual basis). Cash flow counts money when it moves. Late customer payments, equipment purchases and loan payments make the two different.

Nothing you type leaves your browser.