What a cost cut buys you.
A worked example
Starting figures
- Cash
- $500,000
- Monthly net burn
- $60,000
- Cost cut
- 20%
What it returns
- New runway
- 10 mo
- Months added
- 2 mo
- New monthly burn
- $48,000
How to read the results
With the defaults above, new runway works out at 10 mo.