# Runway

> Runway is the number of months a company can keep operating with its current cash at its current burn rate before running out of liquidity.

Updated: 2026-09-03 · Author: Santiago Viglione (Fibady) · https://www.fibady.com/en/glossary/runway

Runway is the number of months a company can keep operating with its current cash at its current burn rate before running out of liquidity if nothing changes.

## How it is calculated

Runway (months) = Available cash ÷ Net monthly burn. Net burn = payments − receipts in the month (if negative, the company generates cash and runway is infinite).

## Example with numbers

Cash 600,000, monthly receipts 150,000, payments 200,000: net burn 50,000; runway = 12 months. With an undrawn credit line of 100,000, real availability is 700,000 and runway 14 months.

## How Fibady does it

Calculates runway and burn per entity and for the group from classified bank movements, including credit lines and advances from the financing module in available cash.

## Frequently asked questions

### Is runway the same as burn rate?

No. Burn rate is how much cash you consume per month; runway is how many months you last at that pace. One is speed, the other is distance.

### How often is it calculated?

Monthly with the cash close, and whenever something relevant changes: a funding round, a credit line or a hiring plan.

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