Startup
Startup Runway Calculator
Calculate how many months your company can operate before running out of cash. Factor in monthly burn rate, revenue, and growth to plan fundraising timing.
How the Formula Works
Basic runway is calculated as: Cash on Hand ÷ (Monthly Burn - Monthly Revenue). With revenue growth factored in, we simulate month-by-month: each month, revenue grows by the growth rate, and net burn (expenses minus revenue) decreases. Runway ends when cumulative spending exceeds cash on hand. Start fundraising 6-9 months before runway ends.
When to Use This Calculator
Every startup CEO and CFO should run this calculation quarterly. Use it to determine when to start fundraising (always start 6-9 months before runway ends), when to cut costs, and how much revenue growth you need to reach profitability. Investors will ask about your runway in every meeting.
Frequently Asked Questions
When should I start fundraising relative to my runway?
Start fundraising when you have 9-12 months of runway remaining. The average fundraising process takes 3-6 months, and you never want to negotiate from a position of desperation (less than 3 months of cash). VCs can tell when founders are running out of time, and it weakens your negotiating position significantly.
What is a healthy burn rate?
There's no universal answer — it depends on stage and growth rate. Pre-product-market-fit startups should burn as little as possible ($50-150K/month). Post-PMF companies scaling aggressively may burn $500K-2M/month if growth justifies it. The key metric is burn multiple: net burn ÷ net new ARR. A burn multiple below 2x is excellent; above 3x is concerning.
How do I extend my runway without fundraising?
Options include: 1) Cut non-essential spending (nice-to-have tools, office perks, overstaffed teams). 2) Renegotiate vendor contracts. 3) Shift to revenue-generating activities. 4) Consider revenue-based financing or venture debt. 5) Delay hiring. The goal is to reduce monthly net burn without sacrificing the core growth engine.