2-minute answer
Cash runway calculator for cash balance, revenue, operating outflow, one-off payments and target buffer.
Current-law check: Reviewed for source/currentness on 12 September 2026. Re-check any later notification, circular, amendment, rate, deadline or portal instruction before acting.
How to use this page
Startup Cash Runway and Burn Calculator should be converted into a documented approval-and-evidence workflow. The legal limit or approval requirement is only one layer; board/shareholder authority, related-party status, valuation, filing and register evidence can also matter.
Practical checklist
- Identify the entity, transaction, counterparty and financial-year facts.
- Map board/shareholder or other approvals before execution, not after the event.
- Retain minutes, declarations, agreements, valuation/working papers and statutory filings.
- Cross-check the Companies Act provision with the latest Rules, forms and MCA filing instructions.
Worked use case
Example: a transaction may be commercially sensible but still fail compliance if the approval was taken from the wrong body or the register/filing trail is incomplete. Build the evidence file at the decision stage.
Official-source checks
Related Finin2min guidance
Reviewed for currentness: 12 September 2026. Educational/professional reference; the controlling law, notification, order or official filing instruction prevails.
Use cash collections and payments, not accrual revenue and expenses.
How This Is Calculated
Runway (in months) = usable cash balance ÷ net monthly burn (cash outflow minus inflow) — usable cash typically excludes any amount earmarked for one-off commitments or a safety buffer you want to preserve, giving a more conservative and realistic runway figure than gross cash balance alone.
Frequently Asked Questions
Why exclude a safety buffer when calculating runway? ▼
Because treating your entire cash balance as spendable overstates true runway — reserving a buffer for unexpected costs or to maintain minimum operating cash gives a more realistic "usable runway" figure to plan fundraising or cost-cutting around.
How often should burn rate be recalculated? ▼
Monthly is common for an early-stage startup, since burn can shift quickly with hiring, revenue changes or cost adjustments — a runway figure calculated on stale burn data can be significantly misleading.
Related guidance: 13-Week Cash Flow Forecast: Startup Survival Model | Finin2min · Cash Efficiency Frontier: Growth Rate vs Burn Rate | Finin2min
Evidence and verification checklist
- Confirm the current, in-force text governing Startup Cash Runway and Burn Calculator on the official source linked above - the summary on this page is an implementation aid, not a substitute for it.
- Record the exact event/transaction date, since the applicable version of the law, form or threshold can change between the date of the underlying event and today.
- Preserve the primary documents (notices, applications, orders, acknowledgements) that would let a reviewer reconstruct how the facts were classified and what was actually done.
- Check for a State-specific rule, later amendment or binding judicial decision that may modify how this applies on your facts.
Before relying on this page
This page is a structured implementation summary, not the operative legal text. Portal or process acceptance of a filing does not by itself establish legal compliance - the underlying classification, authority, evidence and timeline still have to be independently correct. Where the facts are contested, high-value, or time-barred if delayed, verify the current position with the official source and, where appropriate, a qualified professional before acting.
Methodology, assumptions and sources
Scope: Computes how many months a startup's cash balance will last, given current cash, monthly burn rate and (optionally) monthly revenue growth.
Calculation logic
- Simple runway = Current cash balance ÷ Net monthly burn rate (monthly expenses − monthly revenue).
- Where revenue growth is entered, the calculator recomputes net burn month by month as revenue grows, projecting the month in which cash balance reaches zero.
- Where burn is also assumed to grow (e.g., with headcount), that growth rate is compounded month by month alongside revenue.
Inputs and assumptions
- Revenue and burn growth rates entered are user assumptions — the calculator does not predict actual future revenue or cost trajectories.
- Cash balance is taken as the figure entered; it does not read from any accounting system.
Exclusions and edge cases
- Does not model lumpy/one-time cash events (e.g., a funding round, large one-time expense) unless the user adjusts the starting cash balance or burn rate to reflect them.
- This is a planning estimate, not a substitute for a full 13-week or monthly cash-flow forecast.
Sources
No external regulatory source applies — this is a general financial formula, not a statutory computation.
Review status: reviewed and approved by CA Nikhil Gupta on 17 July 2026.