What This Calculator Measures
Rebalance cash runway by adjusting income, expenses, and reserve targets.
By combining practical inputs into a structured model, this calculator helps you move from vague estimation to clear planning actions you can execute consistently.
This calculator shows how runway changes when you adjust income, costs, and buffer assumptions.
How to Use This Well
- Enter income, costs, and reserve.
- Set target runway and buffer.
- Review current runway months.
- Check monthly adjustment gap.
- Update monthly as costs change.
Formula Breakdown
Runway = reserve ÷ burnWorked Example
- $18,000 reserve with $600 burn yields 30 months runway.
- Buffer increases burn to stay conservative.
- Target reserve shows remaining gap.
Interpretation Guide
| Range | Meaning | Action |
|---|---|---|
| 0–3 months | Short runway. | Cut costs quickly. |
| 4–6 months | Moderate runway. | Stabilize and build. |
| 7–12 months | Healthy runway. | Maintain and invest. |
| 12+ months | Strong runway. | Plan growth carefully. |
Optimization Playbook
- Lower variable costs: fastest runway gain.
- Increase income: reduces burn rate.
- Set buffer: plan for volatility.
- Review monthly: keep runway current.
Scenario Planning
- Baseline: current income and costs.
- Cost cut: reduce variable costs by 10%.
- Income boost: add $300 monthly.
- Decision rule: keep runway above 6 months.
Common Mistakes to Avoid
- Ignoring variable costs in burn rate.
- Setting targets without buffers.
- Not updating after income changes.
- Overestimating reserve access.
Implementation Checklist
- Verify monthly costs.
- Set a realistic target runway.
- Apply a buffer for volatility.
- Review runway monthly.
Measurement Notes
Treat this calculator as a directional planning instrument. Output quality improves when your inputs are anchored to recent real data instead of one-off assumptions.
Run multiple scenarios, document what changed, and keep the decision tied to trends, not a single result snapshot.
FAQ
What is a good runway target?
Many people target 6–12 months depending on stability.
Why use a buffer?
A buffer accounts for unexpected costs.
How often should I update?
Monthly or after major expense changes.