Description
Calculate closing cash and a conditional constant-burn runway.
Venture calculations depend on funding scope, fee bases, repayment terms, equity conventions and reporting periods. A post-money investor fraction differs from a pre-money valuation ratio, while constant-burn runway is conditional on a positive burn assumption. Interview consent and reported hypothesis support remain source-record assertions rather than verified evidence.
Calculate closing cash and a conditional constant-burn runway.
When to use this tool
Use Venture Burn Runway Step when you already have openingCash, cashReceipts, cashPayments, expectedMonthlyBurn and need to calculate closing cash and a conditional constant-burn runway.
How to use the tool and how it works
- Enter openingCash, cashReceipts, cashPayments, expectedMonthlyBurn. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read closingCash, runwayMonths, runwayDefined. Inspect runwayDefined before interpreting the associated values.
Require nonnegative opening cash, receipts, payments and expected monthly burn; closing=opening+receipts-payments. For positive burn return max(0,closing)/burn and runwayDefined=true; otherwise return zero and false.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| openingCash | Opening Cash | Required. Finite number; minimum 0. |
| cashReceipts | Cash Receipts | Required. Finite number; minimum 0. |
| cashPayments | Cash Payments | Required. Finite number; minimum 0. |
| expectedMonthlyBurn | Expected Monthly Burn | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| closingCash | Closing Cash | Required. Finite number. |
| runwayMonths | max(0,closingCash)/expectedMonthlyBurn when burn>0; zero placeholder otherwise. | Required. Finite number. |
| runwayDefined | True exactly when the supplied expectedMonthlyBurn is positive; false does not mean unlimited runway. | Required. Boolean. |
{
"input": {
"openingCash": 100000,
"cashReceipts": 20000,
"cashPayments": 30000,
"expectedMonthlyBurn": 15000
},
"output": {
"closingCash": 90000,
"runwayMonths": 6,
"runwayDefined": true
}
}Limitations and assumptions
- Negative closing cash is retained while runway clamps it to zero. Zero-burn runway is an undefined placeholder, not infinite runway. No future cash flow is forecast.
- 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
Reconcile the actual cash-flow forecast, financing agreement, cap table and experiment records for a venture decision. Use the full vesting and funding terms and inspect evidence quality; one balance, status label or supplied fraction does not establish feasibility, ownership or customer demand.
References
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