Tools
Free Cash Runway Calculator
Estimate how many months your cash will last at current burn rate.
Enter your cash balance, monthly expenses, and monthly income to estimate runway in months.
Your cash runway appears here once the inputs are valid.
What is cash runway?
Cash runway is how many months your current cash balance can cover operating costs when you spend more than you earn. It helps freelancers and small businesses plan before reserves run out.
How this calculator works
- Enter cash balance: Add the cash you have available now in bank accounts or readily accessible reserves.
- Enter monthly expenses: Include rent, payroll, software, materials, and other regular outgoings.
- Enter monthly income: Add average monthly revenue from sales, retainers, or other inflows.
- Calculate net monthly burn: Net burn is monthly expenses minus monthly income. If income exceeds expenses, the business is cash positive.
- Calculate runway: When net burn is positive, runway is cash balance divided by net monthly burn, rounded to one decimal place.
Cash runway formula
runway (months) = cash balance / (monthly expenses − monthly income)
The formula applies when net monthly burn is greater than zero. If expenses are less than or equal to income, runway is not calculated because cash is not being depleted.
Worked example
You hold £36,000 in cash, spend £15,000 per month, and earn £9,000 per month. Net monthly burn is £6,000. Runway is £36,000 ÷ £6,000 = 6.0 months.
When to use this calculator
Use it during slow sales periods, before hiring, or when deciding how much buffer you need before the next invoice is paid.
Sending invoices on time helps shorten gaps between income and expenses. Create one with the Free Invoice Generator.
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Don't just take our word for it
I never wanted bookkeeping to become a second job on top of client work. With TapBooks, everything stays organized throughout the year, so I can focus on running my business instead.
Mark Scottsdale
Founder, Scottsdale Creative
Frequently asked questions
Plan with clearer monthly numbers
Runway is a starting point. TapBooks helps you track real expenses and revenue so planning stays grounded in actual business activity.
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- Setup in minutes, not hours
- Start free. No credit card
- Cancel anytime