Business
Cash Runway Unit Economics Calculator
Project monthly ending cash, identify the first reserve breach, calculate opening burn and break-even revenue, and show whether growth closes or widens the cash gap.
Opening monthly gross profit-
Monthly payroll, operating expense, and debt service-
Opening monthly net cash flow-
Opening monthly cash burn-
Simple runway at opening burn-
Revenue needed for monthly cash break-even-
Final-month revenue-
Gross profit through forecast-
Fixed cash outflow through forecast-
Modeled cash at forecast end-
Ending cash above minimum reserve-
Decision view
Cash runway forecast against reserve
Cash runway forecast against reserveMonthly gross profit and fixed cash outflow accumulate from opening cash while the minimum reserve remains visible.
Exact scenario comparisonMonthly revenue growth (%) changes while all other entered assumptions remain constant.
| Monthly revenue growth (%) | Opening monthly gross profit | Monthly payroll, operating expense, and debt service | Opening monthly net cash flow | Opening monthly cash burn | Simple runway at opening burn | Revenue needed for monthly cash break-even | Final-month revenue | Gross profit through forecast | Fixed cash outflow through forecast | Modeled cash at forecast end | Ending cash above minimum reserve |
|---|
Period-by-period detail
Revenue-growth runway cases
How to use Cash Runway Unit Economics Calculator
- Start from unrestricted cash.
- Separate gross margin from revenue.
- Define the reserve that operations should not cross.
Calculator guide
Understanding Cash Runway Unit Economics Calculator
Cash runway should reconcile recurring gross profit with payroll, operating expense, debt service, minimum reserve, and month-by-month revenue change.
Calculation method
How the calculation works
Project recurring gross profit against payroll, operating expense and debt service to show opening burn, simple runway, break-even revenue and cash remaining through the forecast. Monthly revenue is multiplied by gross margin, fixed cash outflows are deducted, and the resulting net cash flow is accumulated through the forecast while revenue changes at the entered rate.
Cash path
Follow cash month by month to the reserve line
The cash curve shows opening balance, monthly operating movement, the reserve threshold, and any projected breach.
Worked situations
Practical examples
- A business with negative opening cash flow may still avoid a breach if growth is sufficient.
- Debt service can shorten runway even when EBITDA is near break-even.
- A hiring plan changes payroll and should be reflected from its start month.
Better inputs
Useful tips
- Use a downside revenue-growth scenario.
- Model one-time cash uses separately.
- Update the forecast from actual closing cash each month.
Before relying on the result
Limitations and common mistakes
- Collections are treated as occurring with modeled revenue.
- Taxes, working capital, capital expenditure, financing proceeds, seasonality, and payment timing are excluded unless entered elsewhere.
- The forecast is not assurance of solvency.
Reference
Key terms
- Runway
- Time until cash reaches zero or a defined reserve under modeled flows.
- Burn
- Negative net cash flow for a period.
- Break-even revenue
- Revenue whose gross profit covers modeled fixed cash outflow.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
Why is simple runway different from the forecast?
Simple runway holds burn constant; the forecast applies revenue change each month.
Should a credit line count as cash?
Show committed borrowing separately from cash already available.
What if no breach occurs?
The result should say the reserve remains covered through the entered horizon.