Runway
How many months of operation current cash supports.
Definition
Runway is cash balance divided by net monthly burn, expressed in months. It answers how long the business can continue at current spending before it requires new revenue, new funding or a cost reduction.
Why it matters
Runway converts an abstract cash balance into a deadline. It should be recalculated whenever burn changes materially, not once a quarter.
Related terms
See this metric on your own numbers
NanoFora calculates it from your actual financial data and shows the transactions behind it.
Start free