ClarityHow to use this tool
- Enter available cash, monthly cash outflow, monthly cash inflow.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Available cash | Numeric value. Zero or positive. | 120000 |
| Monthly cash outflow | Numeric value. Zero or positive. | 30000 |
| Monthly cash inflow | Numeric value. Zero or positive. | 20000 |
Result for these sample inputs
12 months
- Net monthly burn
- 10000
- Available cash
- 120000
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Net monthly burn = outflow − inflow. Runway = available cash ÷ net burn when net burn is positive.
With 120,000 in cash and net monthly burn of 10,000, runway is 12 months.
What to keep in mind
Assumes constant monthly flows and immediate cash availability. Receivables, financing, seasonal changes and minimum cash requirements are not modeled. Nonpositive burn does not imply permanent financial security.
Common questions
What if inflow exceeds outflow?
The tool reports no positive burn instead of dividing by zero or displaying a misleading negative runway.
Is runway the same as profitability?
No. Runway is based on cash movement; accounting profit may include noncash items and different recognition dates.
Methodology maintained by ClarityKit. How these tools are built and checked.