Learn how COMMITLY calculates monthly liquidity consumption (Gross, Net & Total Cash Burn) and the Runway to manage the financial position and planning certainty.
The Cash Burn & Runway widget in COMMITLY provides key information about your company's financial lifespan at a glance. It shows how much liquidity flows out each month and how long your current financial resources will last – a key management tool, especially for growth-oriented companies and startups.
What is Cash Burn?
Cash Burn describes how much money your company “burns” each month. It is the amount by which your Account Balance decreases on average per month. This key figure is especially important if you are in a growth or investment phase and are not (yet) profitable.
In COMMITLY, Cash Burn is shown in three variants:
1. Gross Cash Burn (= operating outflows)
The Gross Cash Burn shows all monthly outflows, i.e. all the liquidity that leaves your company – without taking income into account.
Example: You spend -50,000 € per month – regardless of whether there is any income.
Typical components:
Personnel costs
Rent
Marketing expenses
External services
Other operating costs
2. Net Cash Burn (= operating cash flow = operating inflows - operating outflows)
The Net Cash Burn takes inflows and outflows into account. Here you see how much money is actually lost when you offset all cash flows against each other.
Example: Income 30,000 €, outflows -50,000 € → Net Cash Burn = -20,000 €.
Important: If operating cash flow (Net Cash Burn) is positive, you are not “burning” money but building up liquidity.
3. Total Cash Burn (= change in cash)
The Total Cash Burn shows the absolute change in your Account Balance over the selected period – including one-off effects (e.g. grants, investments, loans). In COMMITLY, it corresponds to the line item Change in Cash.
The change in cash is made up of:
Operating cash flow
+/- Cash flow from investing
= Free cash flow
+/- Cash flow from financing
= Change in cash
Example: You receive an investment of 500,000 €. Despite an ongoing Net Cash Burn, your Account Balance rises – so the Total Cash Burn can be positive.
This means: This key figure reflects the actual change in cash – whether it comes from the operating business or from one-off effects.
What is the Runway?
The Runway indicates how many months your current liquidity is expected to last if the current Cash Burn continues.
Example: You have 100,000 € in the account and a Net Cash Burn of -20,000 €/month → your Runway is 5 months.