learn.howToCalculate
learn.whatIsHeading
Calculates months until cash runs out at current burn rate. Critical metric for venture-backed companies managing financing rounds.
ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |
- 1Calculate current cash balance
- 2Determine monthly cash burn (expenses - revenue)
- 3Divide: cash balance ÷ monthly burn
- 4Result shows months until cash depletion
ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ
ଇନପୁଟ୍
$500k, $50k/mo spend
ଫଳ
10 months
ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ
- ✕Not accounting for forecasted revenue growth in runway
- ✕Ignoring seasonal cash flow variations
ବାରମ୍ବାର ଜିଜ୍ଞାସା
What runway is acceptable?
Ideally 12-18 months to next funding or profitability; 9-12 months is concerning, <6 months critical.
How do I extend runway?
Reduce burn by cutting costs, increase revenue, raise capital, or improve cash collection.
learn.ctaText
ଏହାକୁ ନିଜେ ଚେଷ୍ଟା କରନ୍ତୁ →