Startup Runway Calculator

How to Use the Startup Runway Calculator

Enter your current cash balance, monthly burn rate (total expenses), monthly revenue, and expected monthly revenue growth rate. The calculator shows how many months of runway you have, your net burn rate, daily burn, and the projected date when cash reaches zero. If revenue growth is strong enough to exceed burn, it shows infinite runway.

Runway is the single most important financial metric for early-stage startups. It determines how much time you have to achieve milestones, reach profitability, or raise your next round. Running out of cash is the number one reason startups fail, making runway planning a critical founder skill.

Understanding Burn Rate and Runway

Gross burn rate is your total monthly expenses. Net burn rate is gross burn minus revenue, representing the actual monthly cash depletion. Runway = Cash Balance / Net Burn Rate. If you have $600,000 and spend $80,000 per month with $20,000 in revenue, your net burn is $60,000 and your runway is 10 months.

The Impact of Revenue Growth

Revenue growth dramatically affects runway. Even modest monthly growth compounds quickly. If revenue grows 15% month over month, it doubles roughly every 5 months. This calculator models growth to show that a startup with strong growth may reach breakeven before running out of cash, even if current net burn is high.

Fundraising Timeline Planning

Begin fundraising when you have 6-9 months of runway remaining. The process typically takes 3-6 months, and you want buffer for unexpected delays. Entering fundraising with less than 4 months of runway signals desperation, weakening your negotiating position and potentially leading to unfavorable terms.

Frequently Asked Questions

How do you calculate startup runway?

Divide cash balance by net monthly burn (expenses minus revenue). With $500,000 and $50,000 net burn, runway is 10 months.

What is a good startup runway?

12-18 months is recommended. Less than 6 months is critical. More than 24 months provides significant flexibility.

What is burn rate vs. net burn rate?

Gross burn is total monthly expenses. Net burn is expenses minus revenue. Net burn is more relevant as it shows actual cash depletion speed.

When should a startup start fundraising?

With 6-9 months of runway remaining. Fundraising takes 3-6 months, and you need buffer for delays.

How can a startup extend its runway?

Increase revenue, reduce expenses, renegotiate contracts, cut non-essential spending, or raise bridge financing.