Runway and burn-rate calculator
Runway is the most important number a founder tracks: how long until the cash runs out. Enter your bank balance, monthly spend and monthly revenue, and this tool returns your net burn, your runway in months, and the date you hit zero. It also shows how much you would need to cut, or raise, to reach a target runway. Know this number before every board meeting and every raise.
Net burn is monthly expenses minus revenue. Start a raise well before runway gets short, ideally with 18 to 24 months of buffer.
How it works
- 1Enter your current cash balance.
- 2Enter monthly expenses and monthly revenue to get net burn.
- 3See runway in months, your zero-cash date, and what a target runway requires.
Frequently asked questions
How do you calculate runway?+
Runway is your cash balance divided by your net monthly burn, where net burn is monthly expenses minus monthly revenue. If you have $500k in the bank and burn $50k a month net, you have ten months of runway.
What is the difference between gross and net burn?+
Gross burn is total monthly spend. Net burn subtracts revenue from that spend. Net burn is the number that determines runway, because revenue offsets some of what you spend.
How much runway should a startup keep?+
A common guideline is to raise enough for 18 to 24 months so you have time to hit milestones and still fundraise from a position of strength. Start a raise well before you are down to a few months of runway.
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