Liquidity reservoir and whole-hire capacity cellsOne-time costs and current burn are reconciled before growth capacity
Business
Cash Runway Capacity Calculator
Convert liquidity into an explicit deployment capacity rather than treating all cash as available. The model protects a reserve, budgets current net burn across a selected runway, calculates the remaining recurring-spend envelope, converts it to fully loaded hires, and reconciles recruiting fees, one-time program cost, start delay, and unused headroom.
Maximum hires at target runway-
Current monthly net burn-
Deployable growth budget-
Cost per hire inside horizon-
Added monthly run rate-
Unused headroom-
Paid months per hire-
Capacity decision-
Deployable budget used by the maximum whole-hire plan
Runway deployment reservoir
Protect liquidity first, then allocate only the cash that truly remains
Protected / committedDeployable cells
| Plan | Hires | Recurring commitment | Setup cost | Total horizon use | Ending protected buffer | Status |
|---|
Deployment sequence
Fund the runway promise before approving incremental headcount
- Protect the reserve and price the current monthly burn across the full target horizon.
- Deduct the one-time program commitment from the remaining liquidity.
- Translate each hire into recruiting cost plus paid months inside the horizon.
- Approve only whole hires that leave the protected reserve intact.
- Use the one-hire-beyond row to see the exact cost of crossing the boundary.
Capacity logic
Start delay changes horizon cost, not the eventual monthly run rate
A delayed hire consumes fewer paid months inside the chosen runway, but the organization still inherits the full monthly run rate after the hire starts. The result therefore reports both horizon cost and added monthly run rate.
Detailed calculation process
Solve the budget boundary before rounding to whole hires
Current net burn = max(0, Fixed cash spend − Revenue × Contribution margin)Base horizon commitment = Current net burn × Target runway monthsDeployable budget = max(0, Cash − Reserve − Program spend − Base horizon commitment)Paid months = max(1, Target months − Start delay)Per-hire horizon cost = Recruiting cost + Fully loaded monthly cost × Paid monthsMaximum hires = floor(Deployable budget ÷ Per-hire horizon cost)Approval checkpoint
Check the post-hire run rate outside the modeled horizon
The maximum safe count preserves the selected horizon under current assumptions. Before hiring, extend the plan beyond that horizon and test whether contribution growth can support the added monthly run rate without permanent financing.
Protected hiring capacity
Substitute the default cash constraints before rounding down
Current burn = $410,000 - $450,000 x 62% = $131,000 per monthDeployable budget = $3,000,000 - $600,000 - $150,000 - ($131,000 x 15) = $285,000Cost per hire = $12,000 + ($10,500 x 13 paid months) = $148,500The budget funds one whole hire, adds $10,500 of monthly run rate, and leaves $136,500 unused. A second hire would break the protected 15-month horizon.
Fully loaded evidence
Costs commonly omitted from hiring plans
- Payroll tax, benefits, and variable compensation
- Recruiter, legal, relocation, and onboarding fees
- Equipment, software seats, and facilities
- Management capacity and ramp productivity
Model boundary
Capacity is not permission
The calculation tests cash affordability only. It does not test role necessity, recruiting feasibility, productivity, or employment-law obligations.
Cash runway capacity FAQ
Questions before converting cash into hiring
Why is the result rounded down?
Fractional hiring capacity cannot fund a whole role while preserving the target.
Does delayed hiring always improve the decision?
It protects near-term cash but may defer the revenue or operational benefit the role is expected to create.
What if current burn already consumes the horizon?
The deployable budget becomes zero, signaling that growth commitments require cost reduction, improved contribution, or new financing.
Practical examples
Cash Runway Capacity Calculator in real planning situations
- Find the maximum hires that preserve twelve months of runway.
- Compare immediate hiring with a three-month delayed start.
- Test whether a one-time launch program consumes the entire growth budget.
Important note
Before relying on this result
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Additional Cash Runway Capacity Calculator questions
Why use fully loaded monthly cost?
Salary alone omits payroll tax, benefits, equipment, software, and other recurring employment costs.
How does start delay affect capacity?
A later start reduces the number of paid months inside the selected horizon.
Can the safe capacity be negative?
Yes. That means the current burn already breaches the protected runway target.
Does the model guarantee future financing?
No. It plans only with the cash and assumptions entered.