Calculating your runway is straightforward once you know the Cash Runway formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Cash Runway Calculator.
What is Cash Runway?
The Cash Runway calculation tells you your runway from a few simple inputs. The figure you are solving for here is the runway.
The Cash Runway formula
The core formula is:
Runway = Cash on hand ÷ Monthly net burnHere is what each input means:
- Cash on hand — a money amount. Example: ₹50,00,000.
- Monthly net burn — a money amount. Example: ₹5,00,000.
How to calculate it step by step
- Write down the cash on hand (for example, ₹50,00,000).
- Write down the monthly net burn (for example, ₹5,00,000).
- Apply the formula above to get your runway.
- Double-check the result with the Cash Runway Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Cash on hand | ₹50,00,000 |
| Monthly net burn | ₹5,00,000 |
| Runway | 10.0 |
With cash on hand of ₹50,00,000 and monthly net burn of ₹5,00,000, the runway works out to 10.0.
Example 2
With cash on hand of ₹1,00,00,000 and monthly net burn of ₹5,00,000, the runway works out to 20.0.
| Result | Value |
|---|---|
| Runway | 20.0 |
Example 3
With cash on hand of ₹25,00,000 and monthly net burn of ₹5,00,000, the runway works out to 5.0.
| Result | Value |
|---|---|
| Runway | 5.0 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Cash Runway Calculator does it instantly, for free, with the formula and a worked example built in.
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