Running a business
Cash runway calculator
How long the money in the account actually lasts.
A starting point, not tax advice. Nothing you type leaves your browser.
How this works
What the number means
Runway is cash divided by net monthly burn. If more comes in than goes out there is no runway to calculate — the business funds itself.
The figure worth watching is not the headline months but how it moves. A runway that shortens while revenue is flat is a cost problem; one that shortens while revenue grows is usually a working-capital problem, and those are fixed very differently.
Worked example. $40,000 in the account, $18,000 out and $14,000 in each month is a $4,000 burn — ten months of runway.
Sources
- Plain arithmetic. No published rate is involved.
Rates change. The CRA page is the authority, and these are reviewed every January.
Questions
How often does bookkeeping get done?
Monthly is the most common arrangement, because it keeps GST/HST and payroll remittances on schedule. Quarterly and year-end catch-up work are also available.
Next step
Want someone to check the real figure?
A calculator estimates. A consultation answers for your actual situation. The first one is free.