How long until we run out of money?

Follow business cash month by month. See when cash may reach zero and when money coming in may begin to cover money going out.

Ending cash reaches zero or below

Month 15

Operating cash inflows first cover outflows in month 17, after the modeled cash floor.

Net burn in first month: $46,000
Flat runway from first month: 10.4 mo
Operating cost coverage: Month 17

See the full calculationFollow each number from the inputs to the answer.

Calculation 1

Find when the business reaches its cash floor

What are we finding?

We are finding the first month when ending cash reaches zero or less.

What do these numbers mean?

Cash now: $480,000: The money available before month one starts.
Month one cash in: $32,000: Money expected to be collected during month one.
Month one cash out: $78,000: Money expected to be paid during month one.
Month one burn: $46,000: Cash out is larger than cash in, so the business uses this much cash.
Planned outside money: $0: No outside funding is included.

How do we calculate it?

For each month, add any planned outside money, add cash collected, and subtract cash paid. Then apply the entered monthly changes to next month's cash in and cash out.

ending cash = starting cash + outside money + cash in − cash out

$480,000 + $0 + $32,000 − $78,000

Month one starts with $480,000.
Month one cash changes by $32,000 minus $78,000, which is -$46,000.
After month one, cash in changes by 8% each month and cash out changes by 2% each month.
Repeating the monthly rule first produces an ending balance at or below zero in month 15.

Final answer

Cash reaches zero or less in month 15

What does the answer mean?

This is a timing model. It depends on collecting and spending exactly as entered. A late payment or surprise cost can shorten the time.

Your numbers

Illustrative entries only. Replace them with cash available, cash you expect to collect, cash you expect to pay, and known timing. Month one uses the entered amounts before either percentage change begins.

Cash available now

Cash collected this month

Change in cash collected each month

Applied after the first modeled month

Cash paid this month

Change in cash paid each month

Applied after the first modeled month

Outside funding scenario

Outside money included in this plan

Included in the model only; not treated as committed

Available at start of month

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Modeled cash, month by month

A 120 month example that repeats the same changes each month.

Estimated cash leftCash in covers cash outCash reaches zero

Main takeaway: cash reaches zero or less in month 15.

What this means

Calculated from the entered cash figures and explicit monthly assumptions.

Check this carefully

Cash first reaches zero or less in month 15

Month 15 ends $19 below zero. StepShown uses whole months, so it cannot tell the exact day cash runs out. A bill due before money arrives could also create an earlier gap.

Check this carefully

Money collected covers money paid in month 17, after cash has reached zero

Money collected catches up in month 17, but cash first reaches zero or less in month 15. StepShown does not assume the business can survive the gap.

How to read this

The business spends more cash than it collects in month one

$78,000 paid minus $32,000 collected uses $46,000 of cash in month one. If that gap never changed, $480,000 would last 10.4 mo.

How to read this

The same percentage change repeats every month

Money collected changes 8% each month. Money paid changes 2% each month. Real money arrives and leaves unevenly. Compare this simple path with a month by month list of known dates and amounts.

Compare cash flow sensitivities

The same entered scenario with one hypothetical change.

What you are looking at: Runway, cost coverage month and lowest cash balance under each change. Each row changes one choice while the other entered numbers stay the same.

Runway, cost coverage month and lowest cash balance under each change
Choice	Cash floor	Operating cost coverage	Cash at floor or low
Your inputsYour planAs entered	Month 15	Month 17	$18.9 below zero
Cash out change 0%Same first month	Not in 120 mo	Month 13	$151.3K
Money paid 10% lowerOne change example	Not in 120 mo	Month 15	$133.5K
Money collected 10% higherOne change example	Not in 120 mo	Month 15	$86.4K

Main takeaway: the shaded row is your plan now. Read across another row to see what one change would do.

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Your inputs are already saved in this page's URL.

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How this tool was checked

Sources and review

Code and tests checked

StepShown checked the calculation code and its tests. The answer is still an estimate, not professional advice. Rules can also be different where you live.

Calculation version: Version 1.1
Last updated: Jul 29, 2026
Person responsible: StepShown engineering

Managing Cash Flow: Participant Guide
Published by Federal Deposit Insurance Corporation. Area covered: United States. StepShown owner: StepShown editorial. Checked Jul 29, 2026. Check again by Jan 25, 2027. Monthly cash flow projections that carry ending cash into the next opening balance and separate operating, investing, and financing cash activity. Reference guidance; no date specific value is ingested.
Manage your finances
Published by U.S. Small Business Administration. Area covered: United States. StepShown owner: StepShown editorial. Checked Jul 29, 2026. Check again by Jan 25, 2027. Tracking available cash, accounts receivable, accounts payable, payroll, and the timing difference between accrual and cash accounting. Reference guidance; no date specific value is ingested.
Ready to Raise Capital
Published by U.S. Securities and Exchange Commission staff. Area covered: United States. StepShown owner: StepShown editorial. Checked Jul 29, 2026. Check again by Jan 25, 2027. Calculating runway from projected expenses and preparing a specific plan for how outside funding would meet those expenses. Reference guidance; no date specific value is ingested.

Read the StepShown calculation and writing rules, or report a problem.

Learn more

How the calculation works

Month one uses the entered cash collected and cash paid amounts. Ending cash equals opening cash plus any outside funding included at the start of that month, plus cash collected, less cash paid. Each percentage change is then applied once to produce the next month's operating cash figures.

Cash floor: the first month ending cash is zero or below
Operating cost coverage: the first month operating cash in covers operating cash out

The order of those markers is the central comparison. If the cash floor arrives first, the model has a funding gap before operating cost coverage. If cost coverage arrives first, StepShown also checks whether cash in continues to cover cash out through month 120.

The flat figure divides available cash by net burn in the first month and keeps the fractional month. The monthly path is different because cash in and cash out change separately. Outside funding is included only when entered, becomes available before operating cash flow in the selected month, and is treated as a scenario rather than a commitment.

StepShown stops after 120 months and does not claim cash lasts forever. It does not model exact collection and payment dates, seasonality, customer concentration, churn, receivable delays, inventory, taxes, debt terms, one time obligations, restricted cash, or financing probability. Use a detailed cash forecast and compare real cash with the estimate regularly.

Common questions

What does the cash floor month mean?

It is the first month that ends with zero cash or less. StepShown groups a whole month together. It cannot tell the exact day cash runs out or whether a bill comes before money is collected.

What should I enter as cash in and cash out?

Use cash you reasonably expect to collect and pay, based on the bank balance, accounts receivable and payable timing, payroll, taxes, debt service, inventory, and known commitments. Accounting revenue or expense can land in a different month from cash.

When do the percentage changes begin?

Month one uses the entered cash collected and cash paid amounts. StepShown applies each percentage once to produce month two, then repeats it monthly. The rates are smooth sensitivities, not a sales or expense forecast.

Why can cash divided by burn differ from the monthly path?

Cash divided by burn in the first month holds both cash in and cash out flat. The monthly path changes each separately, so their gap can narrow, widen, or reverse. StepShown shows the exact flat ratio with one decimal place and the modeled monthly cash floor separately.

Should outside funding count as runway?

Only as an explicit scenario. StepShown adds the full entered amount at the start of the selected month. It does not estimate whether financing closes, when funds clear, or the cost and restrictions attached to equity or debt.

Why does the model stop at 120 months?

A ten year cap keeps exponential percentage inputs from becoming an implied long range forecast. No cash floor inside the window means only that the entered smooth path stays above zero through month 120.

What is not modeled?

Exact collection and payment dates, seasonality, customer concentration, churn, accounts receivable delays, inventory timing, taxes, debt terms, capital purchases, one time obligations, restricted cash, financing probability, and any cash item not already included in the entered totals.

The same compounding that decides a runway decides most of these.

Or browse everything in Business.

How long until we run out of money?

Find when the business reaches its cash floor

What are we finding?

What do these numbers mean?

How do we calculate it?

What does the answer mean?

Cash first reaches zero or less in month 15

Money collected covers money paid in month 17, after cash has reached zero

The business spends more cash than it collects in month one

The same percentage change repeats every month

Sources and review

How the calculation works

Common questions

Where to go next

Find when the business reaches its cash floor

What are we finding?

What do these numbers mean?

How do we calculate it?

What does the answer mean?

Cash first reaches zero or less in month 15

Money collected covers money paid in month 17, after cash has reached zero

The business spends more cash than it collects in month one

The same percentage change repeats every month