Days Cash on Hand Calculator
Days cash on hand turns a cash balance into a runway: the number of days a business could keep the lights on with no new money coming in. It is one of the clearest liquidity signals for managers, lenders, and boards. This calculator takes your cash and cash equivalents, your annual cash operating expenses excluding non-cash charges like depreciation, and the number of days in the period, then returns the daily cash burn and the days cash on hand. All figures come from your own statements.
Days cash on hand formula
Daily cash burn = annual cash operating expenses / days in period
Days cash on hand = cash and cash equivalents / daily cash burn
Annual cash operating expenses should exclude non-cash items such as depreciation and amortisation. Days in the period is normally 365. The result is how many days operations could continue on cash alone.
Using days cash on hand
- It is a direct measure of short-term liquidity and operating runway.
- Always exclude non-cash expenses so the burn rate reflects real cash use.
- Lenders and boards often track it as a covenant or governance metric.
- Higher volatility in cash flow argues for a larger cash buffer.
- Compare against sector norms rather than a single universal target.
Days cash on hand: frequently asked questions
What is days cash on hand?
Days cash on hand is the number of days a business could keep operating using only its current cash and cash equivalents if no new revenue came in. It equals cash and equivalents divided by average daily cash operating expenses, and it is a core measure of short-term liquidity and runway.
What is the days cash on hand formula?
Days cash on hand = cash and cash equivalents / (annual cash operating expenses / 365). The denominator is the average daily cash burn, found by dividing annual cash operating expenses by the number of days in the year. This calculator lets you set the days in the period.
Why exclude non-cash expenses?
Operating expenses like depreciation and amortisation do not consume cash, so they should be removed to measure true daily cash needs. Use cash operating expenses, that is, operating costs excluding depreciation, amortisation, and other non-cash charges, for an accurate runway figure.
What is a healthy number of days cash on hand?
It varies by sector and risk tolerance. Many organisations aim for several months of operating cash as a buffer, and nonprofit and healthcare guidance often cites targets in the range of 90 to 200 days or more. Compare your figure to peers, lender covenants, and your own cash flow volatility.
What inputs does the calculator need?
Enter total cash and cash equivalents, annual cash operating expenses (excluding non-cash items), and the number of days in the period (usually 365). The calculator computes the daily burn rate and divides cash by it to give days cash on hand.
Official sources
- U.S. Small Business Administration: Manage your finances.
- U.S. Securities and Exchange Commission: How to read a financial statement.
Reviewed by the CalculatorHub team, edited by James Graham, 16 June 2026. See our methodology.