Description
Compare gross and reserve-adjusted runway under a constant monthly burn rate.
Startup cash budgets distinguish available funds, committed outlays, restricted balances and expected receipts. Subtracting commitments can create a negative balance even while total cash remains positive; dividing by burn assumes a constant spending rate.
Compare gross and reserve-adjusted runway under a constant monthly burn rate.
When to use this tool
Use Runway Buffer At Burn Rate when checking a supplied cash commitment, balance or runway contribution.
How to use the tool and how it works
- Enter cash, reserve, monthlyBurn. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read grossMonths, reserveAdjustedMonths. Use the output convention below.
Require positive monthlyBurn and nonnegative cash and reserve. grossMonths = cash/monthlyBurn; reserveAdjustedMonths = (cash-reserve)/monthlyBurn.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| cash | Cash | Required. Finite number; minimum 0. |
| reserve | Reserve | Required. Finite number; minimum 0. |
| monthlyBurn | Monthly Burn | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| grossMonths | Gross Months | Required. Finite number. |
| reserveAdjustedMonths | Reserve Adjusted Months | Required. Finite number. |
{
"input": {
"cash": 100,
"reserve": 20,
"monthlyBurn": 10
},
"output": {
"grossMonths": 10,
"reserveAdjustedMonths": 8
}
}Limitations and assumptions
- Reserve may exceed cash and create negative adjusted runway. A supplied reserve is not an independently established legal restriction or recommended buffer.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a dated cashflow forecast and the actual funding or payment terms when timing, changing burn or enforceability matters.
References
Similar or alternative tools
- Startup Burn Commitment Share
Compare committed cash with available funds and calculate uncommitted runway on the supplied burn period.
- Startup Runway Committed Cash Adjustment
Calculate constant-burn cash runway after restricted funds and committed payments, preserving a signed shortfall.