Runway

Runway: the number of months a company can continue to operate before it runs out of money. Runway is a particularly important metric for start-ups or venture backed business and is calculated by taking your current cash balance and dividing it by your monthly burn rate. To calculate the burn rate, start by subtracting your ending balance from the starting balance and dividing by the appropriate number of months, which will depend on your chosen period (e.g 1 month or 2 months).