Business Cash Runway Calculator
Before you hire, buy equipment, or add another monthly expense, know how many months of cash you really have.
Affordly helps estimate how a new expense could affect runway, burn rate, cash pressure, and decision timing.
Built for planning, not pressure.
Live tool preview
Sample Business Runway Check
New hire or equipment scenario
Example inputs
- Cash on hand$24,000
- Monthly revenue collected$12,000
- Monthly fixed expenses$9,000
- Variable expenses$2,000
- New hire/equipment cost$3,500/month
Affordly read
- Current Runway24 months
- Runway After New Expense9.6 months
- Net Monthly Burn After Change$2,500
- VerdictWait or reduce cost
Risk score reflects the example inputs above.
Example only. Run your numbers for a verdict tied to your real cash flow.
Run My Business ScenarioWhy runway is the metric that matters
Profit and revenue are lagging indicators. Cash runway tells you how many months you can keep the lights on if revenue slows or costs spike — which is the question that actually determines whether the business survives.
- Many small businesses run into trouble because cash timing, expenses, and revenue collection don't line up.
- Hiring and equipment are the biggest runway killers.
- Inventory that sells slower than expected can trap cash just as quickly as a bad hire.
- Seasonality can shrink runway faster than expected.
- Knowing runway turns guesswork into clear decisions.
How Affordly Business calculates runway
Enter cash on hand, monthly revenue, and recurring costs. Affordly Business projects your runway in months and shows what changes it when you add or remove an expense.
Current runway in months, updated as you add costs.
Scenario planning for hires, equipment, and ad spend.
Compare two paths to growth side by side.
Forecast cash flow 12 months out.
How runway is calculated
Runway = cash on hand divided by monthly net burn. Net burn is your monthly costs minus your collected (not invoiced) revenue. If you have $60,000 in the bank and burn $5,000 per month net, you have 12 months of runway.
The trap is using invoiced revenue instead of collected revenue. Businesses with slow-paying clients can show a healthy profit on paper while running out of cash. Affordly Business uses collected cash so the runway number reflects reality, not optimism.
Healthy vs dangerous runway zones
Twelve months or more is comfortable: you have time to make strategic decisions, hire deliberately, and weather a soft quarter. Six to twelve months is the working zone for most small businesses — workable, but every new expense needs a clear return. Three to six months is the warning zone: most new spending should be deferred and collections need to be tightened.
Under three months is critical. The priority shifts from growth to survival: cut non-essential subscriptions, accelerate receivables, defer hires, and look at financing options before runway hits zero.
- 12+ months: comfortable, plan strategically.
- 6–12 months: working zone, scrutinize every new cost.
- 3–6 months: warning zone, defer non-essentials.
- Under 3 months: critical, focus on collections and cuts.
The biggest runway killers
Hiring is the largest single decision most small businesses make. A $4,000-per-month hire is $48,000 a year plus payroll taxes, equipment, and onboarding time. On a 12-month runway, the wrong hire at the wrong time can drop you to six months instantly.
Equipment, ad spend with no proven return, expanded office space, and software subscription sprawl are the other usual suspects. Inventory that sells slower than expected can trap cash just as quickly as a bad hire — stock sitting on the shelf is cash you can't use for payroll or rent. Affordly Business models each one as a scenario so you can see the runway impact before signing anything.
Using runway to time growth
The healthiest pattern is to grow into runway, not against it. That means making the hire after a deal closes that supports it, buying the equipment after the project that needs it is funded, and scaling ad spend in proven increments rather than guessing at a budget.
Affordly Business lets you stage decisions across the year so you can see which combinations keep runway above your comfort line and which ones push you into the warning zone.
Example scenario
$48,000 cash, $22,000 monthly revenue, $19,500 costs
Considering a $3,500/month hire and $6,000 equipment purchase.
Affordly read
Affordly Business estimates runway drops from 16 months to 7 months. Suggests staging the hire after the equipment is fully utilized.
Frequently asked questions
What counts as runway?
Runway is the number of months your business can keep operating before cash runs out, based on your current cash and monthly burn. Affordly Business estimates runway from the numbers you enter, including cash on hand, collected revenue, recurring expenses, and new costs you are considering. It is meant to help you understand timing before you hire, buy equipment, increase ad spend, or add another monthly expense.
Does Affordly connect to my bank?
No bank connection is required. You can enter your numbers manually, which keeps the tool simple and less invasive. Affordly does not pull bank, credit, or account data unless a future feature clearly asks for permission and you choose to connect it.
Can I model variable revenue?
Yes. Affordly Business should support planning around changing revenue, seasonal swings, slower months, growth assumptions, and different expense scenarios. This is useful for cafés, contractors, service businesses, creators, and small shops where revenue does not stay perfectly flat every month.
Does it replace my accountant?
No. Affordly is a planning and decision-support tool, not a replacement for an accountant, bookkeeper, tax professional, or financial advisor. Use it to estimate cash pressure and compare scenarios, then use professional advice for taxes, accounting, financing, and legal decisions.
Is this for solo founders too?
Yes. Solo operators often feel cash pressure even faster because one new tool, hire, vehicle, ad campaign, or equipment purchase can change the whole month. Affordly Business is useful for solo founders, freelancers, contractors, service providers, and small teams that need to understand whether the next move is affordable.
Related Affordly tools
Ask Affordly before you buy.
Run a quick scenario in under a minute and see if it fits your real cash flow.
Calculate My RunwayAffordly provides estimates and planning tools only. It is not financial, legal, tax, or investment advice.