Days Cash on Hand Calculator
Calculate how many days your cash reserves would cover operating expenses
Frequently Asked Questions
Days Cash on Hand = Cash & Cash Equivalents ÷ [(Annual Operating Expenses − Non-Cash Expenses) ÷ 365]. The denominator estimates your average daily cash operating expense, so the result tells you how many days of operations your current cash could fund with no additional revenue coming in.
Depreciation and amortization are accounting expenses that don't require an actual cash outflow, so they're excluded from the daily cash burn rate — including them would understate how many days your actual cash reserves can really cover.
It varies significantly by industry — healthcare and nonprofit organizations often target 90-180+ days as a safety cushion, while some working-capital-light businesses operate comfortably with far less. Compare your figure to your specific industry's typical benchmark rather than a single universal target.
Current and quick ratios measure liquidity against short-term liabilities. Days cash on hand instead measures liquidity against your ongoing spending rate, answering 'how long could we keep operating on cash alone' — a more direct runway measure, commonly used by hospitals, nonprofits, and lenders assessing financial cushion.