What runway measures
Runway answers one question: if no money came in from tomorrow, how long could you carry on as you live now? It is not a measure of wealth. Someone with a large investment portfolio can still have a short runway if very little of it can be spent this month, and someone with modest savings can have a long one if their costs are low.
That makes it the most useful single number for anyone whose income can stop or slip: freelancers between clients, remote workers on short contracts, or salaried people in a shaky company.
Step 1: count only cash you can reach within days
Add up money you could actually spend within a few days without a penalty or a fire sale:
- Current and savings account balances in rupees.
- Dollar balances in a bank account or payment account you can withdraw from.
- Mobile wallet balances and cash at home.
Leave out provident fund, property, a car you still need, gold or jewellery you would not sell, committee (BC) payouts that are not due yet, and money other people owe you. Those may be real assets, but they will not pay next month’s rent on time.
Step 2: convert dollars at a rate you could really get
Use the rate your bank or exchange would give you after its spread and fees, not the headline interbank rate or a figure from a screenshot. Rates move, sometimes fast, so if you are unsure, plan with a slightly worse rate than today’s. A runway that only works at a flattering rate is shorter than it looks.
Step 3: use a normal month of spending
Take spending from your bank and wallet statements, not from memory. Split it in two:
- Fixed costs: rent, utilities, internet, school fees, loan payments, insurance, anything you pay whether or not you are careful.
- Variable spend: groceries, fuel, eating out, shopping, everything else.
Yearly or lumpy costs belong here too. Take the annual total for things like school admission, car registration and tax, insurance renewals, Eid and wedding season, then divide by twelve and add it to your monthly figure. Leaving them out is the most common reason a runway feels longer on paper than in real life.
Step 4: divide
Runway in months is your reachable cash divided by one normal month of spending. Income is deliberately not part of this sum. Runway asks what happens if income stops, so counting income would hide exactly the risk you are trying to see.
A worked example
Made-up numbers, the same ones the calculator starts with. The exchange rate is an assumption for illustration, not a current rate.
| Rupee cash | PKR 420,000 |
|---|---|
| Dollar cash: $1,800 at 285 | PKR 513,000 |
| Reachable cash | PKR 933,000 |
| Fixed costs + variable spend | PKR 252,500 |
| Runway: 933,000 ÷ 252,500 | 3.7 months |
Reading the result
The calculator uses common rule-of-thumb bands. They are planning labels, not personal advice:
- Under 3 months: thin. Cutting variable spend or adding cash usually comes before investing or new commitments.
- 3 to 6 months: a buffer, but below the usual target.
- 6 to 12 months: solid for most people. Irregular income or dependents are reasons to aim toward the top of it.
- 12 months or more: large. Worth asking whether some idle cash is losing value to inflation.
Keep the number honest
Recalculate once a month, on the same day, using statements. Watch the direction more than the exact figure: a runway that shrinks for three months in a row is a signal even if it is still in a comfortable band. And when you change something big, such as moving house or taking on a car payment, re-run it before you commit, because fixed costs shorten runway the most.
If you hold a mix of rupees and dollars, the next question is how much of each to keep. The guide on splitting savings between USD and PKR covers that.
If you want to track this every month
The calculator is free and complete for a one-time check. If you would rather keep a monthly record, the Runway OS workbook ($25, Excel or Google Sheets, with a 12-month tracker and a two-page guide) does that, and Lite ($9) is a single sheet with the same core numbers. They are new, so there are no reviews yet.