Estimate cash runway from monthly cash data

What you’ll create

A runway calculation table, scenario assumptions, and a short cash-monitoring action list.

Workflow steps

1. 01
   Confirm the cash balance date, currency, period, and treatment of one-off and restricted funds.
2. 02
   Calculate historical monthly net movement and average burn only from supplied periods.
3. 03
   Estimate runway under explicit steady-state and user-defined scenarios; show limits.
4. 04
   List practical questions for an accountant or financial adviser and near-term monitoring steps.

Start your workflow

Use the stages in order. Fill in the bracketed sections and add only source material you are permitted to share.

STAGE 1 — 1. Check the cash inputs
When to use: Use before calculating.
Prompt: Help me estimate business cash runway from my figures. Currency: [currency]. Available cash as of [date]: [amount]. Restricted or earmarked cash: [amount and reason, or none/unknown]. Monthly inflows and outflows by period: [table with dates]. One-off upcoming payments/receipts: [amount, date, certainty]. Credit or receivables: [details and certainty]. Check units, dates, missing periods, and double counts. Ask essential questions before calculating. Do not treat an uncertain receipt or unused credit as cash unless I explicitly ask for a separate scenario.
Expected return: An input audit and a normalized monthly cash movement table.
User check: Reconcile beginning/ending balances if supplied and distinguish available from restricted cash.

STAGE 2 — 2. Calculate runway scenarios
When to use: Use after correcting the data.
Prompt: Using the confirmed figures, calculate monthly net movement (inflows minus outflows) for each period and average net burn over [specified periods]. If average net movement is negative, estimate simple runway as available cash ÷ average monthly net burn, stating assumptions and units. If net movement is positive or mixed, do not force a single runway number; show the observed range and explain why the estimate is unstable. Create only these scenarios: [user-supplied change assumptions]. Show formulas and rounded values.
Expected return: A calculation table, formula notes, and scenario comparison.
User check: Recalculate the arithmetic; verify no double counting and that scenario inputs are labeled, not forecasts.

STAGE 3 — 3. Turn the estimate into a review routine
When to use: Use after validating calculations.
Prompt: Prepare a four-week cash monitoring checklist based on this estimate. Include weekly fields for opening cash, receipts actually collected, payments made, upcoming committed payments, overdue receivables, and variance from the scenario. Add a trigger list using thresholds I provide: [thresholds, or leave placeholders]. Do not invent a “safe” runway threshold. End with questions to take to my accountant or qualified adviser.
Expected return: A simple weekly monitoring table and follow-up questions.
User check: Have an accountant review accounting treatment, taxes, debt, and any major financial decision.