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Business Cash Runway Calculator

Estimate how long your current cash balance can fund a recurring monthly shortfall.

H
Editor — Sole traders & freelancers
Published: 2026-05-21
Short answer

Cash runway is the number of months your available cash can cover a net cash burn. It is a quick decision-making metric, not a replacement for a 13-week forecast. Use realistic collections and outgoings rather than your most optimistic sales assumptions.

Net monthly cash burn
£5,000
Estimated cash runway
6.0 months

How to use the result

If the result is cash-positive, your expected inflows exceed expected outflows. If you have a positive cash burn, compare the runway with your realistic time to collect invoices, reduce costs, raise prices or arrange funding. The earlier you see a shortfall, the more options you usually have.

Tax and debt payments count as outflows

Include Corporation Tax, VAT, PAYE, loan repayments, credit-card settlements and any deferred supplier balances in your outflows. Leaving these out can create a falsely reassuring runway figure.

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Not financial advice

Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.