Days to Capital Exhaustion (Fix & Flip)
It tells you how many days until flip cash runs out at the current burn from interest, insurance, and utilities.
Formal definition
Days to capital exhaustion equals remaining project cash divided by daily holding cost.
Why it matters
Hard-money flips fail when runway hits zero before closing — this metric is the early warning.
Where you see it
- Flip profit spreadsheets
- Private lender draw schedules
- Real estate investor coaching
- House-flipping courses
- Project liquidity dashboards
Worked example
- Remaining cash:
- Daily holding cost: $80.
- Days to exhaustion =
- Interpretation: Roughly 175 days of carry left if no new cash is injected.
How Business metrics calculates it
Remaining cash ÷ Daily holding cost.
Where people fool themselves
Capital runway that assumes you can draw more hard money next week is not a plan. Count committed cash and the draws already approved.
Run it on your own numbers: the Fix & Flip calculator.