Working Capital & Cash Runway Calculator
How many months of cash you actually have, how long your cash cycle really is, and how much working capital you should have on hand.
Your numbers
Your position
What these numbers mean
Cash cycle is how many days sit between you paying a vendor and getting paid by a customer — inventory days plus AR days, minus how long you can stretch payables. Every extra cycle day requires more working capital. Most small businesses run a 30–60 day cash cycle.
Working capital need is roughly your daily opex times your cash cycle days — that's how much cash you should keep on hand just to keep the lights on between when money goes out and when it comes back in.
If you're short, a business line of credit is almost always the right tool — you draw only what you need, pay interest only on what's drawn. See working capital financing options.
Frequently asked questions
How many months of runway should a business have?
Many owners aim for at least three months of operating costs, more if revenue is seasonal or customers pay slowly. Your own cash cycle is the best guide.
What is the cash conversion cycle?
The number of days between paying for inventory or labor and collecting cash from customers. The longer it is, the more working capital you need.
When does working capital financing make sense?
When a short, clear gap, such as a seasonal dip or a large order, will be repaid by revenue that is already on the way. It is a poor fit for covering ongoing losses.