Cash Runway Analysis Model
Calculate your cash runway and analyze the impact of escalating burn rates on business sustainability
What’s hard about this today?
Without accurate cash runway projections, businesses risk running out of cash unexpectedly. Many companies fail to account for escalating losses, which can dramatically shorten their financial runway. Traditional runway calculations using flat burn rates give false confidence, while escalating losses due to growth investments or deteriorating conditions accelerate cash depletion by 20-30%.
How RyzUp fixes this
Cash Runway Estimation for P Pack Pte Ltd. (as of April 2025). This model provides detailed runway projections under both flat and escalating burn rate scenarios, helping you understand exactly how long your cash will last and what happens when losses increase month-over-month.
Current Burn Rate Metrics
Monthly Net Loss
$50,592.79
Runway (Flat Rate @ $500K)
9.9 months
Runway (10% Escalation @ $500K)
7.2 months
Escalation Impact
2.7 months
Understanding Cash Runway
Cash runway is calculated by dividing your current cash balance by your monthly net loss (burn rate)
Flat burn rate assumes consistent monthly losses - useful for stable operations
Escalating burn rate accounts for growing losses (10% monthly increase) - more realistic for scaling businesses
A 10% monthly increase in losses can shorten your runway by 20-30% compared to flat burn
The actual runway depends entirely on your current cash holdings - you must know your cash balance
Escalating losses consume cash following a geometric progression, accelerating depletion significantly
Runway Scenarios by Starting Cash
$500,000 Starting Cash
Moderate runway cushion
$200,000 Starting Cash
Limited runway - urgent action needed
Custom Starting Cash
Provide your actual balance
Runway Comparison: Flat vs. Escalating Burn
Starting Cash | Flat Burn Runway | Escalating 10% Runway | Months Lost | Impact % |
|---|---|---|---|---|
| $100,000 | 2.0 months | 1.6 months | -0.4 | -20% |
| $200,000 | 4.0 months | 3.1 months | -0.9 | -23% |
| $300,000 | 5.9 months | 4.7 months | -1.2 | -20% |
| $400,000 | 7.9 months | 6.0 months | -1.9 | -24% |
| $500,000 | 9.9 months | 7.2 months | -2.7 | -27% |
| $750,000 | 14.8 months | 10.2 months | -4.6 | -31% |
| $1,000,000 | 19.8 months | 12.8 months | -7.0 | -35% |
Cash Depletion Over Time
Monthly Loss Escalation (10% Growth)
Month | Monthly Loss | Cumulative Loss | Cash Remaining ($500K) | Status |
|---|---|---|---|---|
| Month 1 | $50,592.79 | $50,592.79 | $449,407 | Healthy |
| Month 2 | $55,652.07 | $106,244.86 | $393,755 | Monitor |
| Month 3 | $61,217.28 | $167,462.14 | $332,538 | Monitor |
| Month 4 | $67,338.01 | $234,800.15 | $265,200 | Caution |
| Month 5 | $74,071.81 | $308,871.96 | $191,128 | Warning |
| Month 6 | $81,478.99 | $390,350.95 | $109,649 | Critical |
| Month 7 | $89,626.89 | $479,977.84 | $20,022 | Critical |
| Month 8 | $98,589.58 | $578,567.42 | $0 | Depleted |
Critical Recommendations
🚨 URGENT: Determine your exact current cash balance immediately - this is the foundation of all runway calculations
📊 Monitor burn rate weekly - even small increases compound rapidly with escalating losses
💰 Implement cost control measures NOW if losses are increasing month-over-month
📈 Track actual vs. projected losses monthly to validate your runway estimates
⚡ Plan fundraising or cost reduction initiatives at least 3-6 months before cash depletion
🎯 Set a target monthly loss that extends runway to 12+ months for business stability
🔍 Identify and address root causes of escalating losses - growth investments vs. operational inefficiency
✅ Create multiple runway scenarios (best/worst case) and update them monthly with actual data
Ready to Get Started?
Start using this workflow today and transform how you manage your financial data.