Definition How long a business can keep operating before its cash runs out at the current burn rate.
Example €600k of cash with a €100k monthly burn rate gives 6 months of runway.
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Choose your role to see what this term means in your work.
Why it matters It shows how long a business has before it needs more cash.
Where it is used Start-up planning and investor discussions.
How to calculate it Cash available ÷ monthly burn rate
Worked example €600k of cash with a €100k monthly burn rate gives 6 months of runway.
