Is runway the same as profitability?

No. Runway is a cash measure: how long the bank balance lasts at the current monthly burn. A business can be profitable on paper and still have short runway if cash is tied up in stock or receivables.

What counts as monthly burn?

Net burn is cash going out each month minus cash coming in. Salaries, rent, software, stock purchases, repayments — everything that affects the bank balance. If you are cash-positive, enter zero.

Will taking on a loan really extend my runway?

On day one, yes — the drawdown adds to cash. But a loan also adds monthly debt service, which increases burn. For a fuller view, recalculate with the new monthly repayment added to your burn figure.

Calculator · Cashflow planning

Cashflow runway calculator

Runway is the number of months your current cash will last at today's burn rate. It is the single most useful number when you are sizing up whether — and when — to raise finance. This calculator works out runway before and after an optional new drawdown, so you can see what a loan, grant or equity round would actually buy you in time. It is a linear projection: real-world burn rarely stays flat, so treat the figure as an indicative planning input.

Current cash on hand

Cash and equivalents available today (current account + readily-accessible reserves).

Monthly net burn

Cash going out each month minus cash coming in. If the business is cash-positive, enter 0.

Optional new funding amount

A drawdown you are considering — loan, equity, grant or otherwise.

Indicative outputs

Runway before funding: 5 months, 10 days
Runway after funding: 5 months, 10 days
Months added by funding: 0.0 months
Cash + new funding: £80,000

Illustrative — burn rates rarely stay flat. This is a linear extrapolation of one month's figure. Seasonality, debt repayments, late payers and cost step-changes mean real runway varies. Use it as a planning sanity check, not a forecast.

How to read these numbers

Runway before funding: Cash on hand divided by monthly burn. If burn is zero or negative the runway is indefinite — the calculator handles that case rather than dividing by zero.
Runway after funding: Cash on hand plus the new drawdown, divided by monthly burn. Note this does not automatically add the new monthly debt service to burn — re-enter burn with the new repayment included for a fuller view.
Months added by funding: Simply the difference between the two runway figures — how much time the drawdown buys you at today's burn rate.

Assumptions and limits

Linear extrapolation of a single month's burn — no seasonality, growth or cost step-changes are modelled.
New funding is treated as a clean cash injection. Debt service on the funding is not auto-added to burn.
No working-capital effects from stock build-up, receivables ageing or supplier terms.
Indicative only. Real runway is best modelled with a rolling 13-week or 12-month cashflow forecast.
Not a substitute for advice from your accountant on solvency, going-concern or insolvency risk.

FAQs

Is runway the same as profitability?: No. Runway is a cash measure: how long the bank balance lasts at the current monthly burn. A business can be profitable on paper and still have short runway if cash is tied up in stock or receivables.
What counts as monthly burn?: Net burn is cash going out each month minus cash coming in. Salaries, rent, software, stock purchases, repayments — everything that affects the bank balance. If you are cash-positive, enter zero.
Will taking on a loan really extend my runway?: On day one, yes — the drawdown adds to cash. But a loan also adds monthly debt service, which increases burn. For a fuller view, recalculate with the new monthly repayment added to your burn figure.

Decide which type of funding to pursue

Runway tells you how urgently you need to act. The eligibility checker maps your trading profile to the product families likely to look at your case, so you can spend time applying to the right places.

Check eligibility Compare finance types

Important — educational guidance only

Not regulated by the FCA and not a credit broker.
Not financial, legal or tax advice.
Not a loan offer and not a guarantee of approval.
Subject to lender underwriting — criteria can change.

Lendrly provides general eligibility guidance only. It is not financial advice, a loan offer, or a guarantee of approval. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment, and documentation. Lendrly is not a regulated credit broker; we do not submit applications on your behalf.