Specialized calculator · E-commerce
Runway Calculator for E-commerce
E-commerce has unique dynamics: cash tied up in inventory, strong seasonality, and thin margins. Calculate your real runway.
Calculate your runway
The preloaded values are a typical example for E-commerce. Replace them with your own.
Net burn rate
Runway
Good cushion. Execute and plan your next milestone.
Typical example for E-commerce
A growing online store with $180k in the bank, $85k in expenses (including inventory), and $70k in revenue net of acquisition costs has an effective runway of 12 months — but if a seasonal dip hits, it can fall to 4-5 months.
Healthy runway
9-15 months (very sensitive to seasonality)
Burn typically concentrated in
Inventory is the biggest hidden cash drain
Typical cost breakdown for E-commerce
COGS (product + logistics)
The most variable with scale
Marketing / paid ads
Meta, Google, influencers
Salaries
Operations, customer service, marketing
Tools and platform
Shopify, apps, email marketing
Inventory in stock (tied-up capital)
Part of your cash sits in unsold product
Key metrics you should monitor
- Gross margin >40%
- ROAS >3x
- Return rate <15%
- Inventory turnover >6x per year
- AOV rising month over month
Common mistakes when calculating runway for E-commerce
- Not counting inventory as tied-up capital in the runway calculation
- Ignoring seasonality when averaging the burn rate
- Over-investing in inventory before validating demand
- Underestimating the real cash-flow cost of returns
Frequently asked questions
Does inventory count as cash in runway?
No. Inventory has value, but you can't use it to pay payroll or Facebook Ads. Calculate runway with the cash available in your accounts only, and track separately how much capital is tied up in stock.
How do I adjust runway for seasonality?
Calculate two runways: the annual average and the low-season one. If your low season lasts 3 months with sales 50% lower, your real runway should reflect that you burn more cash during those 3 months than a typical month generates.
Runway always up to date, without touching Excel
Hayes Strategic calculates your runway, P&L, and cash flow automatically from your transactions. Built for E-commerce.
Explore the calculator for other industries: