Runway under revenue-drop scenarios. The Cash Runway Stress-Test Calculator takes cash in the bank, monthly revenue, monthly expenses, revenue drop to test and returns runway if revenue falls plus runway today, net burn today, net burn after the drop. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Good business decisions come from putting numbers on the options before committing. Run the calculation with your best estimate, then again with a pessimistic one, and see whether the decision survives both. Use the worked example below to check the maths against your own figures.
How the Cash Runway Stress-Test Calculator works
Runway shrinks faster than revenue falls because expenses stay put. If the stressed runway is under six months, decide now what you would cut.
Worked example
With the example values (cash in the bank of $500,000, monthly revenue of $60,000, monthly expenses of $90,000, revenue drop to test of 30%), the runway if revenue falls is 10 months; runway today 1 year 5 months, net burn today $30,000.00, net burn after the drop $48,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: If revenue exceeds expenses the burn is negative and the runway shows as unavailable (cash-flow positive).
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Frequently Asked Questions
How is runway if revenue falls calculated?
runway = cash ÷ (expenses − revenue); the stress case reduces revenue by the drop percentage.
Which figures do I need?
Cash in the bank, monthly revenue, monthly expenses, revenue drop to test. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How reliable is the result?
As reliable as the estimates you enter. Run the calculation with optimistic and pessimistic inputs to see the range of outcomes before deciding.
What assumptions does this calculator make?
If revenue exceeds expenses the burn is negative and the runway shows as unavailable (cash-flow positive).
