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How to calculate Cash runway (months)

The Cash runway (months) formula, with plain worked examples you can check yourself.

Cash runway (months) = Cash ÷ Burn

Worked examples

Cash = 240000 · Burn = 20000/moCash runway (months) = 12
Cash = 135000 · Burn = 15000/moCash runway (months) = 9
Cash = 35000 · Burn = 5000/moCash runway (months) = 7

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Cash & Liquidity.

Related terms

RunwayCash flowLiquidityWorking capitalOverdraft

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