Days Cash on Hand Calculator

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...

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).

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Unrestricted cash available immediately (cash on hand, checking/savings, and short-term cash equivalents). Exclude restricted cash and non-liquid long-term investments.

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Total operating expenses for the year/TTM. Use the same period as depreciation & amortization. If you only have total expenses, use the closest operating-expense proxy and note the limitation.

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Non-cash depreciation & amortization included in operating expenses. It is subtracted to approximate cash operating expenses. If you don’t have it, enter 0 (results may understate days cash on hand).

Scenarios
Quick liquidity snapshots using common cash coverage profiles (rule-of-thumb, varies by industry).
Very low (25 days)Tight (50 days)Adequate (75 days)Strong (120 days)

Results

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

Enter your inputs above to calculate the results.

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

Days Cash on Hand = Cash & Cash Equivalentstimes 365 / Operating Expenses-Depreciation & Amortization

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 div $40,000 = 50 days

Frequently Asked Questions

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.

Sources & Methodology