How the formula works
Runway months = cash on hand ÷ monthly burn. If burn is zero or negative, runway is not meaningful — you are not consuming cash. The tool refuses magic: it will not invent growth or unpaid invoices.
Worked example
$50,000 in the bank and $8,000 monthly burn yields 6.3 months. If a retainer slips and burn stays flat, you know how many payroll-equivalent cycles you have before something must change — raise rates, cut costs, or land work.
FAQ
What counts as burn?
Average monthly cash leaving the business: living draw, tools, contractors, rent, ads. Ignore paper depreciation; focus on cash.
Should I include expected invoices?
This tool is intentionally simple: cash on hand ÷ burn. For a more optimistic view, subtract only the burn you cannot cover with contracted receivables you trust.
What runway should a solo freelancer keep?
Many aim for 3–6 months of personal + business burn. Longer if revenue is lumpy or you are between retainers.
Is this investment advice?
No. It is arithmetic for planning conversations, not a forecast of markets or client demand.
If runway is short, revisit pricing with the rate calculator or how to raise your rate.