MihsabaHow to use
Estimate months of cash runway from available cash and monthly cash outflows and inflows, separating cash burn from accounting profit.
- Enter matching-period inputs with consistent units: Actually available cash, Monthly cash outflows, Monthly cash inflows
- Monthly net burn = cash outflows − cash inflows; runway months = cash ÷ net burn when positive
- Calculate, then check data definitions and assumptions in the note before comparing with another period.
How it is calculated
Example
Cash of 120,000 with monthly outflows of 30,000 and inflows of 10,000 gives net burn of 20,000 and six months of runway. If inflows rise to 20,000, burn falls to 10,000 and runway extends to 12 months.
Important notes
Use cash flows, not uncollected revenue or unpaid expenses, and exclude restricted cash from the available balance. The model assumes constant averages and does not identify a cash exhaustion date; payroll, invoices and funding timing can cause shortfalls within a month. If inflows equal or exceed outflows, no finite runway is shown: this flat-flow model does not predict depletion, but does not guarantee business continuity.
Worked examples and interpreting results
Cash of 120,000 with monthly outflows of 30,000 and inflows of 10,000 gives net burn of 20,000 and six months of runway. If inflows rise to 20,000, burn falls to 10,000 and runway extends to 12 months.
| Case | Calculation | Result |
|---|---|---|
| Monthly burn | 30000 − 10000 | 20,000 money |
| Estimated months | 120000 ÷ 20000 | 6 |
How to check the result
Use cash flows, not uncollected revenue or unpaid expenses, and exclude restricted cash from the available balance. The model assumes constant averages and does not identify a cash exhaustion date; payroll, invoices and funding timing can cause shortfalls within a month. If inflows equal or exceed outflows, no finite runway is shown: this flat-flow model does not predict depletion, but does not guarantee business continuity.
Frequently asked questions
Why are months absent when burn is zero?
Division by zero does not give a finite duration. Only net burn is shown, under the constant-flow assumption.
Can I use net profit instead of cash burn?
Not automatically. Collection, payments, depreciation and financing make accounting profit differ from cash movement.
Are the starting inputs my actual data?
They are only the worked example. Replace them with your data and press Calculate. Editing an input clears the old result.