Startup Runway Calculator

Startup runway is the amount of time your company can continue operating before running out of cash, assuming no additional revenue or funding. It's typically measured in months and calculated by dividing your current cash balance by your monthly burn rate. Runway tells you how long you have to reach profitability, hit milestones, or raise your next round.

Runway = Current Cash Balance ÷ Monthly Burn Rate. If you have $500,000 in the bank and spend $50,000 per month (net of any revenue), your runway is 10 months. Use net burn rate (expenses minus revenue) for a more accurate picture if your startup is generating some income.

Burn rate is the rate at which your startup spends cash each month. Gross burn rate is total monthly spending regardless of revenue. Net burn rate is monthly spending minus monthly revenue—this is the more useful number for calculating runway. For example, if you spend $80,000/month and earn $30,000, your net burn rate is $50,000/month.

Most investors and advisors recommend maintaining 12–18 months of runway at all times. Less than 6 months is considered critical—you should be actively fundraising or cutting costs. 18–24 months gives you comfortable breathing room to execute, iterate, and reach key milestones before needing more capital.

Start fundraising when you have at least 6–9 months of runway remaining. Fundraising typically takes 3–6 months, so starting early ensures you don't negotiate from a position of desperation. If you wait until you have less than 3 months, investors will sense urgency and you'll likely accept worse terms.

You can extend runway by: reducing expenses (renegotiate contracts, cut non-essential spending, reduce headcount if necessary), increasing revenue (raise prices, focus on sales, reduce churn), securing bridge funding or convertible notes, applying for grants or non-dilutive funding, or negotiating longer payment terms with vendors.

Gross burn rate is your total monthly expenses—everything you spend regardless of income. Net burn rate subtracts your monthly revenue from expenses, showing your actual cash consumption. Net burn is more useful for runway calculations because it reflects how quickly your cash is actually depleting. A startup spending $100K/month with $40K revenue has a gross burn of $100K but a net burn of $60K.

Startups with longer runway have more negotiating leverage. When investors know you're not desperate for cash, they're more likely to offer favorable terms. Short runway signals urgency and can lead to down rounds or unfavorable deal structures. Ideally, raise when your metrics are strong and runway is comfortable—not when you have no other choice.