Your Results
Monthly Net Burn Rate
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The amount of cash your business spends net of revenue each month.
Current Runway (Months)
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How many months your current cash balance will last at your current burn rate.
Fundraising Start Month
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The month you should begin your fundraising efforts to maintain your target buffer.
How This Calculator Works
The tool calculates your monthly net burn rate by subtracting monthly revenue from total monthly expenses. It then divides your current cash balance by this net burn rate to determine your remaining months of runway.
When to Use This Tool
A snack brand is planning a new product launch and needs to know if they have enough cash to cover increased marketing and production costs.
The tool reveals if their current cash will sustain them through the launch period and when they might need to secure additional funding.
A frozen meal company is experiencing seasonal sales fluctuations and wants to understand the impact on their cash reserves.
It helps them visualize how their runway shortens during low-revenue months, prompting proactive financial planning.
A beverage startup is considering expanding into a new retail chain, which requires significant upfront slotting fees and inventory.
The calculator shows if their existing capital can support the expansion or if a capital raise is immediately necessary.
Common Questions
How accurate is the runway calculation?
The calculation is based on your provided inputs. For best accuracy, ensure your monthly revenue and expense figures are recent averages or projections.
What if my revenue or expenses fluctuate significantly?
Consider using average figures over the last 3-6 months, or input your projected figures for the upcoming period to get a forward-looking estimate.
Why is a 'Target Buffer Months' input important?
This input helps you plan proactively. It tells you when to start fundraising, not just when you'll run out of cash, giving you time for the fundraising process.
Does this tool account for one-time expenses?
No, this tool uses average monthly figures. For one-time large expenses, you should adjust your 'Monthly Operating Expenses' to reflect the impact over the relevant period.
Plan Your Next Raise with Confidence
Guidance provides CPG operators with practical tools and expert insights to navigate financial challenges and secure sustainable growth.
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