Cash runway calculator
More money goes out than comes in. How many weeks does your cash last?
The example numbers are from block 3: a made-up small gym in a quiet summer. Change them to yours: the numbers stay in this browser and are not sent anywhere.
Result for the example
- Net cash flow per week
- -$600money in - money out
- How long the cash lasts
- about 15 weeks(cash today) / weekly shortfall, rounded down
- Cash after 8 weeks
- $4,200cash today + 8 x net cash flow
- Cash falls by $600 a week. Decide what to change well before week 15, not after.
- Dividing the cash by all the money out ($4,600) would give far too few weeks: the money that comes in counts too.
A simple teaching calculator with the formulas of the course. It leaves out taxes, seasons and much of real life, and it is not financial advice.
How it works
Runway in weeks = cash today / (money out - money in per week)
Profit is not cash. When more money goes out than comes in, your cash falls every week, and runway tells you how many weeks it lasts. Divide by the weekly shortfall, the difference, not by all the money that goes out.
A small gym has $9,000. In summer $4,000 comes in and $4,600 goes out each week: cash falls by $600 a week. $9,000 / $600 = 15 weeks. A buffer of a few weeks of fixed costs gives time to react: a salon with $2,400 of fixed costs a month needs $3,600 for 6 weeks.
A common mistake: Dividing the cash by all the money out. A shop with $6,000, $3,000 in and $3,750 out a week has 8 weeks, not 1.6.
Practise this in block 1
Block 1 of Ownwise is free, with no account needed to start: short lessons on costs, margin and break-even, then a made-up case where you make the decisions and see what they lead to.
The full case on this topic is block 3, part of the paid practice pack.