← The FP&A libraryPractice · 17 questions →
Cash & working capital
Cash runway
How many months the business can keep operating at its current net burn before cash reaches zero.
Owned by: Entry analystTest band: Entry analyst
The formula
Runway (months) = Cash ÷ Monthly net burn
In practice
Quote it in months and know the date. Below six months, the raise or the cuts have to be under way already.
The kind of thing the test asks
- Cash is $600k and net burn is $75k a month. What is the runway?
More in cash & working capital
Free · no account · no card
Get your 2027 budget built from your QuickBooks — P&L, balance sheet and cash flow, in Excel.
Knowing the method is half of it. Wauvel runs it on your QuickBooks, every day.
$99/mo, everything included. Free for 14 days, no card.