What is cash runway?
Answer: Cash runway is how many months you could keep the business (and yourself) going if new income paused tomorrow. It is a safety gauge, not a perfect forecast.
How do I calculate runway?
Answer: Runway (months) ≈ (cash available + expected income) ÷ average monthly spend.
How can I stress-test my runway?
Answer: Use Solo Plot’s free Cash runway stress tester to model “what if income drops?” without rebuilding a spreadsheet.
More detail: what to count
Money in — Savings you would spend on bills, reliable side income, signed retainers (be conservative).
Money out — Average monthly spend, not your best month. Include rent, food, software, tax set-asides, and debt.
Example: £6,000 saved + £1,000 expected, spend £2,500/month → about 2.8 months if new work stops.
Recheck monthly or after any large purchase—tax bills and slow seasons move the number fast.