Question 1

What is runway?

Accepted Answer

Runway is the number of months your business can continue operating at its current burn rate before running out of cash. It is calculated by dividing available cash by monthly net burn (expenses minus revenue).

Question 2

How do you calculate startup runway?

Accepted Answer

A basic estimate divides cash in bank by monthly expenses minus monthly revenue. The result is only as complete as the inputs and does not establish RunwayCal's product-derived True Cash Position.

Question 3

What is True Cash Position?

Accepted Answer

True Cash Position is a product-derived planning metric built from confirmed financial inputs and RunwayCal's calculation rules. It keeps held cash and recorded obligations in context, but it is not the bank balance, unused credit, expected revenue, runway, or a guarantee of what is safe to spend.

Question 4

Why is my runway shorter than expected?

Accepted Answer

A bank-balance estimate can omit relevant obligations, delivery context, and timing. Review the inputs behind the result before using it for a decision.

Question 5

How do taxes affect runway?

Accepted Answer

Upcoming tax obligations (GST, VAT, advance tax, payroll tax) can reduce the cash available for operations. Include the obligation in the inputs when you want to see how it changes this runway estimate.

Question 6

How does deferred revenue impact available cash?

Accepted Answer

Advance payments can carry a delivery obligation. RunwayCal keeps recorded deferred-revenue context visible when deriving True Cash Position, rather than treating every receipt as unrestricted operating capacity.

Question 7

What is the difference between runway and cash flow?

Accepted Answer

Runway measures how long your cash lasts. Cash flow measures how much cash moves in and out each period. You can have positive cash flow in a month but still have short runway if your total cash is low relative to ongoing burn.

Question 8

How often should runway be recalculated?

Accepted Answer

Review runway whenever a material input changes, such as a hire, customer loss, funding round, or tax payment. In RunwayCal, relevant views recompute from the financial inputs recorded in the workspace.

Estimate how long your cash could last.

See how selected obligations change the estimate.

See how different assumptions change runway.

A runway estimate is only as useful as the inputs behind it.

Need the estimate connected to the rest of the business?

Frequently asked questions about runway.