Cash Runway in months (gross burn)
Cash Runway is the amount of time (typically months) you have before your business runs out of cash if current income and expenses stay the same.
Your cash reserve is the root of your business success. For accurate financial forecasting, it’s crucial that you track:
- Subscription-related cashflows (expansions, downgrades, and churn)
- Cash burn
Note that cash runway can also be negative. A profitable company can have a negative monthly burn rate because there is more revenue than expenses.
Data sources include:
- Integrations to Subscription Management Software
- Integrations to Accounting Software
- Integrations to Payroll Software Software
- Manual entries in Calqulate
- Data import via API
Formula
Cash Runway = cash balance / monthly burn rate
Updated almost 2 years ago