# How To Calculate Runway in Timberline | Arithmix

Learn how to calculate runway in Timberline with our step-by-step guide. Our article provides easy-to-follow instructions and helpful tips to help you accurately determine your company's runway and make informed financial decisions.

Calculating runway is an important task for any business owner or entrepreneur. It helps you determine how long your company can sustain its operations without running out of cash. In simple terms, runway is the amount of time your business can survive with the cash it currently has. It is a crucial metric that can help you make important decisions about your business's future.

## What Is Runway?

Runway is a financial metric that calculates the amount of time a company can continue to operate with its current cash balance. It is calculated by dividing the current cash balance by the monthly burn rate. The burn rate is the amount of money a company spends each month to cover its expenses. By calculating the runway, you can determine how long your business can survive without additional funding.

## When Is It Valuable To Calculate Runway?

Calculating runway is valuable for any business, but it is especially important for startups and small businesses that are just starting out. These businesses often have limited cash reserves and need to carefully manage their finances to ensure their survival.

Calculating runway can help you make important decisions about your business's future. For example, if your runway is short, you may need to consider raising additional funding or cutting expenses to extend your runway. On the other hand, if your runway is long, you may have more flexibility to invest in growth opportunities or take calculated risks.

## How Do You Calculate Runway in Timberline

Timberline itself isn't naturally geared towards letting you calculate complex metrics like Runway. As an alternative, teams typically use products like Arithmix to import data from Timberline and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that's powerful yet easy to use. With Arithmix you can import data from systems like Timberline, combine it with data from other systems, and create calculations like Runway.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.