Simulation

When Will Your Cash Run Out

Starting with $50,000, billing $20,000 a month but paying $25,000, you lose $5,000 a month and would run out in about 10 months. Add a 30-day client payment delay and the first month brings in nothing, pulling the break-even point a month earlier. The chart tracks your balance across 36 months so you can see the cliff.

Results

Visualization

BizTool provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions.

How It Works

Each month we add revenue that has cleared (delayed by the client payment lag) and subtract expenses. The balance steps down by the monthly net. The first month the balance goes negative is your runway. A longer payment delay means the early months collect nothing, accelerating the shortfall. The chart makes the decline visible before it becomes a crisis.

What Should You Do?

Shorten the payment delay wherever you can: deposit invoices fast, offer a small early-pay discount, or require deposits. If runway is under 6 months, cut fixed expenses now or line up financing before you need it, because cash crunches are easiest to solve early.

Frequently Asked Questions

Why does a 30-day delay hurt so much?

It means the first month collects no revenue, so you burn an extra month of expenses from cash before income arrives, pulling the cliff earlier.

What if some clients pay on time?

Use an average delay across your book. The slider models the worst realistic case; you can lower it if most clients are prompt.

Does this include seasonality?

No. It uses a flat monthly revenue. If your business is seasonal, model your low season separately to find the true floor.

How do I extend runway?

Cut expenses, speed collections, or add a cash buffer. Each moves the negative-cash month later on the chart.