🚀 Business Runway Calculator

Calculate how long your business can operate with current cash and burn rate. Essential for financial planning and investor discussions.

$
$
%
$
%
months

💼 CFO Tips for Extending Runway

  • Focus on Income Growth: Even small increases in monthly income can dramatically extend runway
  • Optimize Expense Management: Identify and reduce non-essential recurring expenses
  • Monitor Cash Flow: Track income vs expenses weekly for early warning signals
  • Plan for Fundraising: Start fundraising when you have 6-12 months of runway left
  • Scenario Planning: Model best, worst, and realistic cases for better decision making
  • Emergency Fund: Maintain additional cash reserves for unexpected situations

📊 Professional financial planning tool by CFO Hub - Empowering finance leaders with actionable insights

How Does the Business Runway Calculator Work?

The Business Runway Calculator helps you estimate how many months your business can continue operating before running out of cash, based on your income, expenses, and growth trends. It is especially useful for startups and growing businesses looking to extend their financial runway.

Inputs Explained:

  • Current Balance: The amount of cash currently available to operate your business.
  • Monthly Income: Your business’s recurring revenue, calculated monthly.
  • Monthly Income Growth: An optional percentage to factor in monthly income increases, useful for growing businesses.
  • Monthly Expenses: Your total operational costs each month.
  • Monthly Expenses Reduction: An optional percentage to project monthly cost-cutting or improved operational efficiency.

How It Calculates:

Each month, the calculator:

  • Adjusts income and expenses using growth/reduction rates.
  • Subtracts the net burn (expenses minus income) from your cash balance.
  • Stops when the balance hits zero or turns negative.

This gives you a projected number of months your business can sustain operations. If income begins to exceed expenses, the runway becomes infinite which indicates a self-sustaining business model.

Why Use a Business Runway Calculator?

Understanding your financial runway is essential for making strategic decisions, from fundraising timelines to hiring and budgeting. Investors frequently ask for runway estimates, and having a clear answer helps build credibility and confidence.

Use this tool to:

  • Plan for capital raises
  • Adjust burn rates
  • Forecast sustainability under different scenarios

The tools and calculators provided on this site are for general informational purposes only and are intended to support your own financial analysis. They are not a substitute for professional financial, tax, or investment advice. CFO Hub makes no guarantees about the accuracy or relevance of these tools for your specific situation. All figures are hypothetical and meant solely to illustrate potential scenarios. We recommend consulting with a qualified advisor for guidance tailored to your needs. If you have any questions, feel free to reach out to us directly.