Why does this calculator ask for Depreciation & Amortization (D&A)?

Because D&A is non-cash. This calculator removes it from annual operating expenses to estimate your true daily cash outflow.

Should I include restricted cash in “Cash & Cash Equivalents”?

No—use cash that’s actually available to run the business. If cash is legally/contractually restricted, it will overstate your real cushion.

What exactly should go into “Operating Expenses (annual)” here?

Use the operating cost base you must pay to keep running (the same base you want covered by cash), then back out D&A using the separate field. Stay consistent year to year.

What’s the difference between Days Cash on Hand and cash runway?

Days Cash on Hand uses accounting operating expenses (cash OpEx per day). Cash runway usually uses net burn (cash burn after revenues/collections). If you’re growing fast or collections swing, runway can diverge a lot.

Days Cash on Hand Calculator (DCOH)

Days Cash on Hand Calculator

Estimate how many days you can cover cash operating expenses using only cash & cash equivalents. Formula: Days Cash on Hand = Cash & Cash Equivalents ÷ ((Operating Expenses − Depreciation & Amortization) ÷ 365).

Cash & Cash Equivalents

Operating Expenses (annual)

Depreciation & Amortization (annual)

Results

Days Cash on Hand days
Daily Cash Operating Expense ($/day) $

What is Days Cash on Hand?

Days Cash on Hand measures how many days your business can cover day-to-day operating costs using only cash and cash equivalents, assuming no new cash inflows.

It’s a liquidity runway metric used in budgeting, covenant monitoring, funding strategy, and operational risk management. Higher runway reduces refinancing and dilution risk; lower runway forces tighter working capital control, OpEx discipline, and sharper cash conversion cycle (CCC) execution.

Formula

Example

Given:

Cash & Cash Equivalents = $2,000,000
Operating Expenses (annual) = $15,330,000
Depreciation & Amortization (annual) = $730,000

Step 1: Cash operating expenses (annual)

$15,330,000 − $730,000 = $14,600,000

Step 2: Daily cash operating expense

$14,600,000 ÷ 365 = $40,000 per day

Step 3: Days Cash on Hand

$2,000,000 ÷ $40,000 = 50 days

How to Use the Days Cash on Hand Calculator

Enter your available cash, your annual operating expenses, and annual D&A. The calculator converts expenses into a daily cash operating expense and shows how many days your cash can cover it.

Enter Cash & Cash Equivalents
- Input the amount of cash you can actually use (bank cash + true cash equivalents).
Enter Operating Expenses (annual)
- Add your annual operating expense total you want your cash cushion to cover.
Enter Depreciation & Amortization (annual)
- - Input total annual D&A so the calculator removes non-cash costs from OpEx:
formula: Daily Cash Operating Expense = (Operating Expenses − Depreciation & Amortization) / 365
formula: Days Cash on Hand = Cash & Cash Equivalents / Daily Cash Operating Expense
Review “Days Cash on Hand”
- This is your cash cushion in days based on your daily cash operating expense.
Use Scenarios / Share & Embed (optional)
- Expand “Scenarios” to compare different inputs, or use “Share / Embed” to copy the result summary for reports.

Frequently Asked Questions

Because D&A is non-cash. This calculator removes it from annual operating expenses to estimate your true daily cash outflow.
No—use cash that’s actually available to run the business. If cash is legally/contractually restricted, it will overstate your real cushion.
Use the operating cost base you must pay to keep running (the same base you want covered by cash), then back out D&A using the separate field. Stay consistent year to year.
Days Cash on Hand uses accounting operating expenses (cash OpEx per day). Cash runway usually uses net burn (cash burn after revenues/collections). If you’re growing fast or collections swing, runway can diverge a lot.

Methodology & Sources

Bibliography

Pima County Community College District Governing Board (2024). Board Policy BP 4.07 — Financial Stability (Days Cash on Hand definition and calculation) — Pima County Community College District (Pima Community College) https://www.pima.edu/about-pima/leadership-policies/policies/board-policies/docs-bp-04/BP-4-07.pdf
Accessed 2025-12-24
New Hampshire Insurance Department (N.H. Administrative Code) (2015). N.H. Admin. Code § Ins 1805.02 — Days-Cash-On-Hand Calculation — Cornell Law School, Legal Information Institute (LII) https://www.law.cornell.edu/regulations/new-hampshire/N-H-Admin-Code-SS-Ins-1805.02
Accessed 2025-12-24
Delaware Department of Education (2024). Financial Performance Framework Guidance Document (Days Cash on Hand definition and calculation) — Delaware Department of Education https://education.delaware.gov/wp-content/uploads/2024/03/Financial-Performance-Framework-Guidance-Document.pdf
Accessed 2025-12-24

Days Cash on Hand Calculator

Results

What it Means?

What is Days Cash on Hand?

Formula

Example

How to Use the Days Cash on Hand Calculator

Enter Cash & Cash Equivalents

Enter Operating Expenses (annual)

Enter Depreciation & Amortization (annual)

Review “Days Cash on Hand”

Use Scenarios / Share & Embed (optional)

Frequently Asked Questions

Methodology & Sources

Bibliography

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