Start a Business / Interactive tool
Startup Cost & Cash Runway Planner
A startup can have enough money to open and still lack the cash needed to keep operating. This startup cost and cash runway planner separates launch payments from ongoing cash movements so you can examine that risk before making a larger commitment.
The planner uses a deliberately simple constant-month model. It is useful for comparing assumptions quickly, but it is not a dated cash-flow forecast and does not predict sales. Use it to identify questions and pressure points, then build a more detailed plan when payment timing and commitments become real.
Begin with cash that is actually available
Enter the amount available before the launch payments included in this scenario. Distinguish money you can use from funding you hope to receive. A pending application, an unsigned agreement, or an expected sale is not the same as available cash. Consider any conditions or restrictions on the funds and obtain appropriate advice when necessary.
Keep the purpose of the model clear. You are exploring cash movement, not determining accounting profit or deductible expenses. A loan receipt, equipment purchase, owner contribution, or deposit can affect cash differently from its treatment in the financial statements.
List one-time launch payments
Include the cash payments you expect to make before ordinary operation begins: essential equipment, setup, initial stock, deposits, and other relevant launch commitments. Check whether installation, delivery, accessories, training, and professional assistance are included in supplier estimates. Local licenses, insurance, zoning, and other requirements depend on the business and location.
A refundable deposit still uses cash while it is held. Record its expected return separately when building a detailed forecast. Do not remove an essential payment from the scenario simply because it makes the launch look harder. Instead, consider a different scope, timing, or funding approach.
Estimate monthly receipts and outflows consistently
Cash receipts are money expected to arrive, not merely orders placed or invoices issued. If customers pay after delivery, align the receipt assumption with realistic collection timing. Outflows should include the relevant payments needed to operate, with appropriate allowances for inventory, staffing, premises, subscriptions, transport, and other commitments.
Avoid counting an item both as a launch payment and a recurring monthly payment unless there really are two separate cash movements. If owner household needs are part of the cash plan, identify them explicitly without assuming they are deductible business expenses. The model cannot detect an omitted payment or an unrealistic collection assumption.
Read the runway result correctly
The planner subtracts launch payments from available cash. It then calculates monthly cash burn as outflows minus receipts. When burn is positive, remaining cash divided by that burn gives an approximate number of months to zero under the constant assumptions. The cash-floor calculation shows when the same scenario would reach the reserve amount you entered.
For example, $8,000 in cash less $3,000 in launch payments leaves $5,000. Monthly outflows of $2,500 and receipts of $1,500 imply $1,000 in monthly burn. That gives five months to zero and four months to a $1,000 cash floor. This is an illustrative arithmetic example, not a recommended reserve level or a forecast for a particular industry.
Recognize the cases that need different interpretation
If launch payments exceed available cash, the result shows an immediate shortfall. Solve that problem before relying on a later runway estimate. If remaining cash is already at or below your chosen floor, the time to that floor is zero.
If monthly receipts equal or exceed outflows, the constant model has no finite depletion date. That does not prove accounting profitability, safe financing, or freedom from cash risk. A large annual payment, a collection delay, a seasonal downturn, or a new investment can still create a shortfall that an average month does not reveal.
Run a less favorable scenario
Try lower monthly receipts, higher outflows, or larger launch payments. Change one major assumption at a time to understand which one drives the result. Record the basis for each estimate and the next step needed to verify it. A current supplier quote and an optimistic guess deserve different confidence levels.
Use the result to choose an action: postpone optional spending, narrow the initial offer, verify demand, revise payment arrangements appropriately, or reconsider the launch date. Do not assume future credit will be available precisely when the model needs it.
Move from average months to actual dates
Before signing significant commitments, create a cash forecast that shows opening cash, receipts, payments, and closing cash by period. Put irregular bills in the period when they are due. An average can look comfortable while a payment next week arrives before customer money does.
Review actual cash movements frequently during an uncertain launch and replace estimates with evidence. Keep notes about why the original assumptions were wrong. That history improves the next forecast and makes it easier to distinguish a temporary timing gap from a more persistent problem with costs or demand.
Keep the tool in its proper role
The planner is an educational decision aid. It does not model taxes automatically, evaluate loan suitability, or provide individualized financial, accounting, legal, or tax advice. Consult appropriate official sources and qualified professionals for consequential requirements.
Inputs are processed in the page and are not saved or sent to our server by this tool. The optional CSV export creates a local record of your scenario. Use it to compare versions and discuss assumptions with an adviser. Your next useful step is to verify the assumption most likely to change the decision, not simply accept the most optimistic runway figure.
All dollar amounts are in US dollars (USD).
See how launch payments and monthly cash movements affect your available funds.
Illustrative values are prefilled. Replace them with your own estimates. Inputs are processed in this page; this tool does not save them or send them to our server. Other site services have separate privacy controls.
How the scenario works
Remaining launch cash = available cash − one-time launch payments. Monthly cash burn = monthly outflows − monthly receipts. When burn is positive, approximate months to zero = remaining cash ÷ burn. Approximate months to your cash floor = (remaining cash − cash floor) ÷ burn, with a minimum of zero.
Worked example
$8,000 available cash minus $3,000 launch payments leaves $5,000. With $2,500 in monthly outflows and $1,500 in monthly receipts, cash burn is $1,000 per month. The simplified time to zero is five months; time to a $1,000 cash floor is four months.
Important limits
This constant-month scenario is not a detailed cash-flow forecast. It ignores within-month timing, seasonality, growth, unexpected events, and changing costs. Enter all relevant cash payments and expected collections, avoiding double counting. If receipts equal or exceed outflows, the model has no finite depletion date under those assumptions; that does not prove accounting profitability or eliminate cash risk. Cash shortfalls caused by launch payments are shown immediately.
For planning background, see the SBA business planning resources.
Educational planning tool. Not individualized financial, accounting, tax, or legal advice. No business outcome is guaranteed.