Calculate startup runway - how long your cash will last based on current cash balance and monthly burn rate.
Startup Runway Calculator
Calculate startup runway - how long your cash will last based on current cash balance and monthly burn rate.
Input your cash flow data
Formula
Net Burn Rate = Monthly Burn Rate - Monthly Revenue. This represents actual cash consumption after accounting for revenue.
Runway (Months) = Current Cash / Net Burn Rate. If net burn is negative (positive cash flow), runway is infinite assuming revenue continues.
Runway (Days) = Runway (Months) × 30. Approximate days until cash runs out.
Gross Burn Rate = Total monthly expenses (salaries, rent, marketing, etc.) regardless of revenue.
Startup runway indicates how long a company can operate before running out of cash. Most startups aim for 12-18 months of runway. Start fundraising when you have 6-9 months remaining.
Steps
Enter current cash balance (total available cash).
Enter monthly burn rate (total monthly expenses).
Optionally enter monthly revenue to calculate net burn rate.
Review runway in months and days, and recommendations for cash management.
Additional calculations
Enter your cash flow data to see additional insights.
Startup runway is the number of months (or days) a company can operate before running out of cash, assuming current burn rate and no additional funding. It's a critical metric for startup survival and fundraising planning.
The Core Concept
Runway answers the question: "How long until we run out of money?" It's calculated as: Runway = Current Cash / Monthly Net Burn Rate. If revenue exceeds expenses (positive cash flow), runway is effectively infinite assuming revenue continues.
Why Runway Matters
Understanding runway is essential for:
Fundraising timing: Start fundraising 6-9 months before running out of cash
Cash management: Make informed decisions about spending and growth investments
Strategic planning: Balance growth investments with cash preservation
Risk management: Identify cash flow risks and plan for contingencies
Runway Calculation
Basic Formula
Runway (Months) = Current Cash / Net Burn Rate
Where Net Burn Rate = Monthly Expenses - Monthly Revenue. If revenue exceeds expenses, net burn is negative and runway is infinite (assuming revenue continues).
Example Calculation
If a startup has $500,000 in cash, $50,000 monthly expenses, and $20,000 monthly revenue:
Net burn rate = $50,000 - $20,000 = $30,000/month
Runway = $500,000 / $30,000 = 16.7 months
Burn Rate and Cash Management
Gross vs Net Burn Rate
Gross burn rate is total monthly expenses regardless of revenue. Net burn rate subtracts revenue from expenses, representing actual cash consumption. Net burn is more accurate for runway calculation.
What is a Good Runway?
Less than 3 months: Critical - immediate action required
3-6 months: Short - start fundraising immediately
6-12 months: Moderate - begin fundraising process
12-18 months: Good - adequate time for fundraising and growth
18+ months: Extended - may indicate underinvestment in growth
Start fundraising when you have 6-9 months of runway remaining. The fundraising process typically takes 3-6 months from first investor meeting to cash in bank, so starting early is critical.
Best Practices
Monitor regularly: Update runway calculations monthly as cash and burn rate change
Plan ahead: Factor in fundraising timeline and probability of success
Track trends: Monitor whether burn rate is increasing, decreasing, or stable
Account for seasonality: Consider revenue and expense seasonality in calculations
Conclusion
Startup runway is a critical metric for cash management and fundraising planning. Calculate runway as current cash divided by net burn rate. Most startups aim for 12-18 months of runway and start fundraising when they have 6-9 months remaining. Regular monitoring and proactive cash management are essential for startup survival and growth.
FAQs
What is startup runway?
Startup runway is the number of months (or days) a company can operate before running out of cash, assuming current burn rate and no additional funding. It's calculated as: Runway = Current Cash / Monthly Burn Rate.
What is burn rate?
Burn rate is the rate at which a company spends cash, typically measured monthly. Gross burn rate is total monthly expenses. Net burn rate accounts for revenue: Net Burn = Gross Burn - Monthly Revenue.
How do I calculate monthly burn rate?
Monthly burn rate = Total monthly operating expenses (salaries, rent, marketing, etc.). For net burn rate, subtract monthly revenue: Net Burn = Monthly Expenses - Monthly Revenue.
What is a good runway?
Most startups aim for 12-18 months of runway. Less than 6 months is critical and requires immediate fundraising or cost reduction. 18+ months provides more flexibility but may indicate underinvestment in growth.
How does revenue affect runway?
Revenue reduces net burn rate, extending runway. If monthly revenue exceeds expenses (positive cash flow), runway becomes infinite assuming revenue continues. Net burn = Gross burn - Revenue.
When should I start fundraising?
Start fundraising when you have 6-9 months of runway remaining. Fundraising typically takes 3-6 months, so starting early ensures you don't run out of cash during the process. Having 12+ months gives you leverage in negotiations.
How can I extend runway?
Extend runway by: reducing expenses (cutting non-essential costs), increasing revenue (faster growth), raising additional capital, or improving unit economics (reducing cost per customer acquisition).
What is the difference between gross and net burn?
Gross burn rate is total monthly expenses regardless of revenue. Net burn rate subtracts revenue from expenses. Net burn is more accurate for runway calculation as it reflects actual cash consumption.
How do I account for one-time expenses?
For runway calculation, use recurring monthly expenses. One-time expenses (equipment purchases, legal fees) should be excluded from monthly burn rate or amortized over their useful life.
What about future funding rounds?
Runway calculation assumes no additional funding. If you're planning a funding round, calculate runway to that date and ensure you have sufficient cash to reach it. Factor in fundraising timeline and probability of success.
Summary
This tool calculates startup runway - how long your cash will last based on current cash balance and monthly burn rate.
Outputs include runway in months and days, net burn rate, status, recommendations, an action plan, and supporting metrics.
Formula, steps, guide content, related tools, and FAQs ensure humans or AI assistants can interpret the methodology instantly.
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Calculate startup runway - how long your cash will last based on current cash balance and monthly burn rate.
How to use Startup Runway Calculator
Step-by-step guide to using the Startup 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 Startup Runway Calculator?
Simply enter your values in the input fields and the calculator will automatically compute the results. The Startup Runway Calculator is designed to be user-friendly and provide instant calculations.
Is the Startup Runway Calculator free to use?
Yes, the Startup Runway Calculator is completely free to use. No registration or payment is required.
Can I use this calculator on mobile devices?
Yes, the Startup Runway Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.
Are the results from Startup 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.