Cash runway
Cash runway: use available cash, net cash burn per month. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
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Formula & explanation
Runway = cash / monthly net burn
Variables & units
- Available cash
- currency · minimum 0, maximum 1000000000000
- Net cash burn per month
- currency/month · minimum 0.000001, maximum 1000000000000
Worked example
100000 cash and10000 monthly burn gives10 months.
Assumptions
Constant net burn; future financing, revenue changes and working capital swings are not modelled.
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Practice with an example
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