Startup Runway Calculator
Determine your burn rate and how many months your startup can survive before needing more cash.
Net Burn: Expenses - Revenue.
Runway (Static): Cash / Net Burn.
*Projections are calculated dynamically month over month until cash hits zero.
🏆 Extending Your Startup Runway
Everything you need to know about using this calculator and the math behind it.
How it Works
Calculates how many months a business can survive before running out of money, assuming current cash reserves and average monthly burn rate.
The Formula
Runway (Months) = Total Cash Reserve / Monthly Burn Rate.
Pro Tip
Founders should ideally maintain at least 12-18 months of runway at all times to weather economic downturns without forced fundraising.
Frequently Asked Questions
What is startup runway and why is it critical? +
Runway is the number of months your startup can operate before running out of money, calculated as cash balance ÷ monthly net burn rate. It's critical because it sets the deadline for achieving milestones that justify your next fundraise or path to profitability. A startup with 6 months of runway is in survival mode; 18+ months lets you build thoughtfully.
What's the difference between gross burn and net burn? +
Gross burn is your total monthly spending before any revenue. Net burn is gross burn minus monthly revenue — it's the actual cash consumed each month. A company spending $50K/month but earning $20K has a net burn of $30K. Runway is always calculated using net burn.
When should I start fundraising relative to my runway? +
Start fundraising when you have 9–12 months of runway remaining. VC processes typically take 3–6 months from first meeting to wire, and you want to negotiate from strength, not desperation. If you have 18+ months, focus entirely on building and let metrics pull investors to you.
How can I extend runway without raising more money? +
Common strategies: defer founder salaries, eliminate non-essential SaaS subscriptions, pause paid marketing, shift to contractors, negotiate better vendor terms, accelerate customer collections, and offer annual payment discounts. Even reducing burn by 20% can add months of critical runway.
What's a healthy burn multiple? +
Burn multiple is net burn ÷ net new ARR — how much you spend to generate $1 of new recurring revenue. Below 1x is excellent, 1–1.5x is good, 1.5–2x is acceptable for early-stage, and above 2x is a warning sign. Investors increasingly use burn multiple alongside growth rate to assess capital efficiency.