Short answer: With $20,000 in the bank, $4,000 of monthly revenue and $7,000 of expenses including your pay, cash lasts 10.6 months if revenue grows 5% a month, and 6.7 months if sales stay flat. Planning your own pay? How to Pay Yourself From an LLC (and How Much Is Safe).
Check our math
Here is the result above, step by step, using the numbers already filled in.
- Monthly burn now$7,000 − $4,000 = $3,000
- Runway with flat sales$20,000 ÷ $3,000 = 6.7 months
- Month 1 (revenue $4,000)cash $20,000 − $3,000 = $17,000
- Month 2 (revenue $4,200, +5%)$17,000 − $2,800 = $14,200
- Month 3 (revenue $4,410)$14,200 − $2,590 = $11,610
- Month 11 (revenue $6,516)$312 − $484 = -$173, below zero
- Runway with growth10 months + $312 ÷ $484 = 10.6 months
How this calculator works
Runway is how long the business can keep paying its bills from the cash it has. The calculator starts with your cash minus any one-time expense coming up, then goes month by month: revenue minus expenses, with revenue growing at the rate you set. When cash drops below zero, that's the end of the runway; if revenue catches up with expenses first, you've reached break-even and the cash stops falling.
Runway uses cash in the bank, not profit on paper. Invoices customers haven't paid yet don't count until the money arrives, which is why collecting faster is one of the quickest ways to extend it.
Include what you pay yourself in expenses. Leaving it out makes runway look longer than it is, and it's usually the first cost owners cut when cash gets tight.
The one-time expense field is for a known bill coming up soon: equipment, a security deposit, an insurance premium or a quarterly tax payment. It comes out of your cash before the months start, which is what will happen in real life.
Growth is the risky input. Try 0% to see the runway if sales stay flat, then a cautious rate. The verdict flags less than three months as urgent and six or more as comfortable.
Months of runway by cash and growth
| Revenue growth per month | $10,000 cash | $20,000 cash | $50,000 cash |
|---|---|---|---|
| 0% | 3.3 mo | 6.7 mo | 16.7 mo |
| 2% | 3.5 mo | 7.3 mo | Never runs out |
| 5% | 3.7 mo | 10.6 mo | Never runs out |
| 8% | 4.0 mo | Never runs out | Never runs out |
| 10% | 4.5 mo | Never runs out | Never runs out |
$4,000 of revenue and $7,000 of expenses a month now, no one-time expense.
Worked examples
Service business with a gap
$35,000 in cash, $9,000 of revenue and $12,000 of expenses a month, revenue growing 3% a month.
| Result | |
|---|---|
| Result | Month 11 |
| Monthly burn now | $3,000 |
| Verdict | You reach break-even before cash runs out |
Flat sales and an equipment bill
$15,000 in cash, $6,000 of revenue, $8,000 of expenses, no growth, and a $4,000 equipment payment coming up.
| Result | |
|---|---|
| Runway | 5.5 months |
| Cash after the one-time expense | $11,000 |
| Verdict | 6+ months of runway |
New business with fast growth
$60,000 saved, $2,000 of revenue and $9,000 of expenses a month, hoping for 10% monthly growth.
| Result | |
|---|---|
| Result | 10.5 months |
| Monthly burn now | $7,000 |
| Verdict | 6+ months of runway |
Using your result
If the runway is under six months, act while you still have choices: raise prices, collect invoices faster, pause costs that don't bring in revenue, or line up financing. Lenders are easier to work with before cash runs low. The business loan calculator and the line of credit calculator show what borrowing would cost.
Use the break-even calculator to see how many sales it takes to stop the burn, and revisit your runway every month with real numbers.
What it doesn't cover
- It assumes steady monthly expenses and smooth growth; real months vary.
- Taxes due later, like a quarterly estimate, should be entered as a one-time expense.
- Credit you haven't drawn yet isn't counted as cash.
- Seasonal businesses should run it for their slow season separately.
Read more
Frequently asked questions
What is cash runway?
The number of months your business can keep going on the cash it has now, at its current rate of spending more than it earns.
How do I calculate my burn rate?
Monthly expenses minus monthly revenue. Here it's $7,000 − $4,000 = $3,000 a month.
How much runway should a small business have?
Six months or more gives you time to fix problems; under three months calls for action now. More is better when sales are uncertain.
How long will $20,000 last if sales don't grow?
6.7 months at a $3,000 monthly burn.
What's the difference between runway and break-even?
Runway is how long your cash lasts while you're losing money. Break-even is the point where revenue covers expenses and the cash stops falling. The calculator shows whichever comes first.
How often should I recalculate my runway?
Every month, with that month's actual cash, revenue and expenses. A runway that's shrinking faster than planned is an early warning.
Should I count money I can borrow as runway?
Not in this calculator. A credit line you haven't used can disappear when a lender reviews your account. Count it as a backup plan, and look at the cost with the line of credit calculator.
Does growth always lengthen runway?
Only if it arrives. The table shows the difference between flat sales and steady growth; plan around the flat number and treat growth as upside.
How can I extend my runway?
Raise prices, collect what customers owe you faster, cut costs that don't bring in revenue, and line up a credit line before you need it.
Sources
This calculator uses only the numbers you enter; it doesn't depend on tax figures.
Updated October 2026 · By the NetTakeHome team. Estimates for planning, not tax, legal or financial advice.