// calculator
Ecommerce cash runway calculator (with POs and payouts)
Work out how many weeks of cash you have left, after the purchase orders you owe and the payouts still in transit. A standalone estimate from your own numbers.
David LindahlFounder of Keel HQ, and runs a DTC brand on it
Published Last verified
// tl;dr
Enter your cash, your average weekly net burn, the purchase orders you still owe and the payouts on their way. Runway is usable cash divided by weekly burn. Unlike a generic calculator, it takes the POs out and puts the payouts in.
// calculator
6.1 weeks
About 43 days of cash at this pace.
$48,000 − $12,000 + $4,200 = $40,200, ÷ $6,500 a week
The formula
runway (weeks) = (cash − purchase orders owed + payouts in transit) ÷ average weekly net burn
Net burn is what leaves your accounts in a typical week minus what comes in. Use a few months of history, not your best or worst week.
When to use it
Before you place a large purchase order, take on a payment, or plan a launch. If the runway is shorter than your supplier's lead time plus your payout delay, the order will land before the cash does.
Do this automatically in Keel HQ
This calculator is a standalone estimate: it uses a burn rate you type in, the purchase orders you owe and the payouts in transit. Keel HQ's days of cash is forward-looking instead. It divides your connected cash by the weekly total of your bills and debt payments, and the 14-week forecast on the cash page lays out purchase orders and payouts week by week. The figures are not the same, so use the calculator for a quick check and the app for the plan.
Questions
- What is cash runway?
- The number of weeks your cash lasts if spending continues at its current pace and nothing new comes in beyond what is already on its way.
- Why subtract purchase orders?
- A purchase order you have committed to is cash that is already spoken for. Counting it as available makes the runway look longer than it is.
- Why add payouts in transit?
- Shopify Payments pays out on business days, usually 3 business days after a sale in the US, plus your bank's processing time. That money is yours but not in the bank yet, so it extends the runway.
- How does Keel HQ work this out?
- Keel HQ's cash page shows days of cash from your connected bank balance and your bills and debt payments, and a 14-week forecast that also schedules purchase orders and Shopify payouts. This calculator is a simpler estimate, so the two numbers will differ.
// how keel hq does this
Know your position. Never be surprised.
Runway days, debt stack, a 14-week rolling forecast with scenario sliders, and auto-generated action items — all without a spreadsheet.
See cash command center in Keel HQ
// sources
- Understanding Shopify Payments payout timing, Shopify Help Center · accessed