Cash runway calculator

Why runway matters more than profit in a tight month

A business can show a profit for the year and still run out of cash in a particular week. Runway answers the more urgent question: if nothing changes, how long until the account cannot cover what is due? Knowing that number early turns a crisis into a plan. Six weeks of warning is enough time to chase debtors, talk to suppliers, set up an ATO payment plan or arrange funding. Six days is not.

The calculator projects your balance week by week for a quarter. It spreads your normal monthly money in and money out evenly across the weeks, drops in the lump-sum bill in the week you choose and shows when the balance falls below the minimum you want to keep. The bars give a quick picture of the trend.

What to do with the answer

1. If the runway is long, keep a standby facility for surprises. A funding-on-call facility sits ready, and with many facilities you pay mainly for what you draw, though line fees vary.
2. If the bill is the problem, look at options for a BAS bill, including a payment plan, before borrowing.
3. If money out keeps beating money in, the fix is in the business, not the bank. Our guide to calculating and extending runway covers the levers.

Getting the inputs right

Use the last three months of bank statements rather than your budget. Include GST, PAYG withholding, super and your own drawings in money out. If sales are seasonal, run the calculator twice, once with a quiet month and once with a busy one. The difference between the two is often the size of line of credit that would smooth the year.

If the numbers show a gap you need to bridge, send a 60-second enquiry. No credit check to enquire, and a person will talk you through whether funding is the right answer.