See how new hires affect runway. Enter current cash, monthly burn, cost per hire, and number of hires to get new runway and months lost. Optional one-time cost per hire.
Runway & Hiring Parameters
Enter current cash, monthly burn, and new hire costs to see the impact on runway
Understanding the Inputs
Key components for runway impact calculation
Current Cash & Monthly Burn
Current cash is the balance available today. Monthly burn is total recurring expenses per month (salaries, rent, software, etc.). Runway = Cash ÷ Burn.
Use actual bank balance and recent average burn
Exclude one-time items from burn when possible
New Hire Cost
Monthly cost per hire should include fully loaded cost: gross salary, benefits, payroll taxes, and allocated overhead (tools, space). One-time cost (signing, equipment) reduces cash immediately.
Typical fully loaded: 1.25–1.4× base salary
One-time cost shortens runway by reducing cash up front
Formula Used
New Monthly Burn = Current Burn + (Monthly Cost per Hire × Number of Hires)
Cash After One-Time = Current Cash − (One-Time per Hire × Number of Hires)
New Runway = Cash After One-Time ÷ New Monthly Burn
Runway is months of cash left at the new burn rate. One-time hiring costs reduce cash first, then runway is calculated with the higher recurring burn.
Runway is the number of months the company can operate at the current burn rate before cash runs out. When you add employees, you increase monthly burn (recurring cost) and often incur one-time costs (signing bonus, equipment). Both reduce runway: one-time costs reduce cash immediately, and higher burn shortens the time that cash lasts.
Why It Matters
Startups must balance hiring (to grow) with runway (to survive until the next round or profitability). Hiring too aggressively shortens runway and increases pressure to fundraise or cut costs; hiring too slowly can delay growth. This calculator quantifies the tradeoff.
Two Levers: Recurring and One-Time
Recurring cost: Salary, benefits, payroll taxes, and allocated overhead increase monthly burn. New runway = Cash ÷ New monthly burn.
One-time cost: Signing bonus, relocation, equipment reduce cash in the period paid. Cash after one-time is used in the runway calculation, so one-time costs shorten runway even before the first full month of new burn.
The Runway and Hiring Cost Formulas
New monthly burn = Current burn + (Monthly cost per hire × Number of hires). If there are one-time costs, cash after one-time = Current cash − (One-time per hire × Number of hires). New runway = Cash after one-time ÷ New monthly burn.
The Calculation Identity
New Runway = (Cash − One-Time Costs) ÷ (Current Burn + New Hire Recurring Cost)
Defining the Inputs
Current cash: Bank balance (or projected at hire date) available for operations.
Current monthly burn: Total recurring expenses per month before the new hires.
Monthly cost per hire: Fully loaded—salary, benefits, taxes, allocated overhead (see Fully Loaded section).
One-time per hire: Signing bonus, relocation, equipment, etc., paid at or near start.
Interpreting Runway Impact
A small percentage drop in runway (e.g. under 10%) usually means hiring is affordable relative to current burn. A large drop (e.g. over 25%) means runway shortens materially; plan fundraising or cost offsets.
Target Runway After Hiring
Keep runway above 12–18 months when possible so you have time to fundraise (typically 3–6 months) and hit milestones. If post-hire runway falls below 12 months, consider phasing hires, raising first, or reducing other burn.
When Impact Is Acceptable
Runway drop < 10%: Hiring is a small increment to burn; usually acceptable if runway remains above target.
Runway drop 10–25%: Meaningful impact; ensure fundraising or revenue plan is on track.
Runway drop > 25%: Significant; prioritize extending cash or reducing other costs before scaling headcount.
Fully Loaded Cost per Hire
Use fully loaded monthly cost for the recurring impact: base salary + benefits + payroll taxes + allocated overhead (software, space, etc.).
Rule of Thumb
A common multiplier is 1.25–1.4× base salary for fully loaded cost. One-time costs (signing, relocation, equipment) reduce cash in month zero and should be entered separately in this calculator.
Allocated overhead: share of tools, rent, and other shared costs.
Planning Headcount and Fundraising
Use this calculator before committing to offers: see how many hires you can add and still keep runway above your target (e.g. 12 months).
If Runway Drops Too Much
Consider phasing hires, raising first, or reducing other burn. Pair with a runway extension calculator to model the effect of closing a round—then you can plan hires after funding with updated cash and optional post-raise burn.
Best Practice
Model scenarios: e.g. 2 hires now vs 4 over 6 months. Compare post-hire runway to your target and to typical fundraising timelines (3–6 months) so you do not run out of cash before the next milestone or round.
Conclusion
Hiring increases burn and, when one-time costs exist, reduces cash. Both effects shorten runway. Use this tool to quantify the impact and plan headcount against cash and fundraising timelines.
Keep runway above 12–18 months when possible, and pair this calculator with burn rate and post-funding runway tools to model full scenarios before scaling headcount.
Frequently Asked Questions
Common questions about hiring cost and runway
How does hiring affect runway?
Hiring adds recurring monthly cost (salary, benefits, overhead), which increases burn. It may also add one-time cost (signing, equipment), which reduces cash immediately. Higher burn and lower cash both shorten runway (months of cash left).
What is fully loaded cost per hire?
Fully loaded cost includes base salary, benefits, employer payroll taxes, and allocated overhead (tools, space, etc.). A common multiplier is 1.25–1.4× base salary. Use monthly fully loaded cost for the recurring burn impact.
Should I include one-time hiring costs?
Yes. One-time costs (signing bonus, relocation, equipment) reduce cash in the period they are paid. The calculator subtracts them from current cash before computing new runway, so you see the true impact on months of runway.
What runway should I target after hiring?
Many startups aim for 12–18 months of runway after key hires. Fundraising often takes 3–6 months, so having at least 12 months gives time to raise without running out of cash. Adjust by stage and market conditions.
How can I reduce the runway impact of hiring?
Phase hires over time, secure funding before scaling headcount, or offset new cost by reducing other burn. Use this calculator to compare scenarios (e.g. 2 hires now vs 4 over 6 months) and pair with a post-funding runway calculator to model raising first.
Usage of this Calculator
Practical applications
Who Should Use This Calculator?
Founders & CFOsTo see how many hires you can add and still maintain target runway.
People / HRTo plan headcount against budget and runway before making offers.
InvestorsTo assess whether a startup’s hiring plan is consistent with its runway and raise timeline.
Startup AdvisorsTo model scenarios (e.g. phased hiring vs big batch) and recommend runway targets.
Limitations
Assumes burn and hire costs are constant; revenue growth or other cost changes will change runway in practice.
One-time costs are applied immediately; if spread over time, adjust cash or use a cash flow forecast.
Summary
The Hiring Cost Impact on Runway Calculator shows how new hires change monthly burn and shorten runway.
Use it to plan headcount against cash and fundraising, and to model fully loaded and one-time hiring costs.
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See how new hires affect runway. Enter current cash, monthly burn, cost per hire, and number of hires to get new runway and months lost. Optional one-time cost per hire.
How to use Hiring Cost Impact on Runway Calculator
Step-by-step guide to using the Hiring Cost Impact on Runway Calculator:
Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided
Frequently asked questions
How do I use the Hiring Cost Impact on Runway Calculator?
Simply enter your values in the input fields and the calculator will automatically compute the results. The Hiring Cost Impact on Runway Calculator is designed to be user-friendly and provide instant calculations.
Is the Hiring Cost Impact on Runway Calculator free to use?
Yes, the Hiring Cost Impact on Runway Calculator is completely free to use. No registration or payment is required.
Can I use this calculator on mobile devices?
Yes, the Hiring Cost Impact on Runway Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.
Are the results from Hiring Cost Impact on Runway Calculator accurate?
Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.