Pricing & Profit calculator
Cash Flow Runway Calculator
Work out current net monthly burn and estimate how many months your cash reserves may last at the current trading pattern.
Why use it
- Useful when you need a fast sense check on how long current cash might last under the present trading pattern.
- The result is only as stable as the averages you enter. Irregular revenue and lumpy expenses can change the real runway quickly.
- A negative or zero burn means revenue is covering expenses, so cash reserves are not currently being depleted by operating losses.
Calculator tool
Use the cash flow runway calculator
Work out current net monthly burn and estimate how many months your cash reserves may last at the current trading pattern.
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Email it to yourself, send it to a customer, or copy the figures into a quote — all without an account.
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Important note
BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.
- Calculator results are general estimates only and depend on the figures entered.
- Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
- Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.
How it works
Understand the formula before you use the result
The calculator uses a simple working formula so you can sense-check the result quickly and explain it clearly inside your business.
Cash flow runway formula
Net monthly burn = average monthly expenses - average monthly revenue
Estimated runway in months = current cash reserves / net monthly burn
If net monthly burn is zero or negative, the business is not currently burning cash on the assumptions entered.
Worked example
See the numbers in a realistic scenario
Use the example below as a sense check when you compare the calculator result to a real quote, sale, or pricing decision.
Worked example
Worked example: checking current runway
A business has $50,000 in cash reserves, spends $18,000 a month on average, and brings in $12,000 a month in average revenue.
- Current cash reserves: $50,000
- Average monthly expenses: $18,000
- Average monthly revenue: $12,000
Calculation steps
- Net monthly burn = $18,000 - $12,000 = $6,000
- Estimated runway = $50,000 ÷ $6,000 = 8.33 months
At the current burn rate, the business has a little over 8 months of runway.
FAQ
Common questions about the cash flow runway calculator
These are the practical questions operators usually run into when they apply the result to a real business decision.
What if revenue is higher than expenses?
Then the business is not currently burning cash on the assumptions entered. In that case, the calculator will flag that runway is not being limited by operating losses right now.
Should I use gross revenue or net cash received?
Use the monthly revenue figure that best reflects real cash coming into the business. If collections are delayed, a cash-received view is often more useful than invoiced sales.
Does this replace a real cashflow forecast?
No. It is a quick planning estimate. A real forecast still matters if revenue timing, loan payments, tax, or large one-off costs are material.
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