Runway

Definition

How many months until cash runs out at the current net burn.

Formula

Runway = Cash balance / Net burn

Worked Example

Cash $600,000, net burn $9,000/month:

Runway = 66 months

Interpretation & Pitfalls

Model runway under scenarios (current burn, +2 hires, revenue -20%); the headline number assumes nothing changes — and something always changes.

In TupicFinance

Live bank balances and burn trends produce a continuously updated runway figure.