Runway Calculator

Overview

Determine how many months your business can operate at its current spending rate before running out of cash. Calculates gross burn, net burn, and runway under multiple scenarios (current, lean, growth).

Wilson Tools Used

• spending_summary — calculate average monthly expenses (gross burn) and net burn (expenses minus revenue)
• transaction_search — determine current cash position from recent balance and identify trends in burn rate

Workflow

1. Ask for the current cash balance (or identify from the most recent account balance).
2. Use spending_summary for the past 3-6 months to calculate:
   • Gross Burn = average monthly total expenses
   • Monthly Revenue = average monthly total income
   • Net Burn = Gross Burn - Monthly Revenue
3. Use transaction_search to check if burn is trending up or down (compare last 3 months vs prior 3 months).
4. Calculate runway under three scenarios: