Cash Runway Calculator Explained for Australians
Shows how many months your business can operate on its current cash. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Cash Runway Calculator.
Why it matters
Australian businesses deal with GST at 10%, BAS reporting, PAYG withholding for staff, super guarantee obligations and company or individual tax depending on structure. Getting pricing and margins right is the difference between busy and profitable.
What you need to enter
The calculator asks for 2 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Cash in bank ($) | 50000 |
| Monthly net burn ($) | 8000 |
The formula
Runway = cash ÷ monthly net cash outflow.
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Cash runway | 6.3 months |
The headline figure is 6.3 months (cash runway). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the cash runway changes with cash in bank
The table below keeps every other input at the example value and moves only “Cash in bank ($)” up and down by 10% and 20%. It shows how sensitive the cash runway is to that one figure.
| Cash in bank ($) | Cash runway |
|---|---|
| 40,000 | 5 months |
| 45,000 | 5.6 months |
| 50,000 | 6.3 months |
| 55,000 | 6.9 months |
| 60,000 | 7.5 months |
At 40,000 the result is 5 months; at 60,000 it is 7.5 months. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Remember BAS, PAYG and super payments when estimating burn. They are easy to forget until they fall due.
Keep going
Before relying on the number, read Cash Runway Mistakes Australians Make and How to Avoid Them. You might also find these guides useful:
- How the Sole Trader Tax Calculator Works (With a Worked Example)
- Company Tax Calculator: Formula, Example and What the Result Means
- Using a Sales Commission Calculator in Australia: A Step-by-Step Guide
Frequently asked questions
- When do I need to register for GST?
- When your annual GST turnover reaches $75,000, or $150,000 for non-profits. Taxi and ride-share drivers must register regardless of turnover.
- What company tax rate applies?
- 25% for base rate entities with turnover under $50 million, and 30% for other companies.
- Should I talk to an accountant?
- Yes, for structure, tax planning and compliance. These calculators give quick estimates only.
Run your own numbers in the Cash Runway Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.