Startup Runway Calculator
Example: Cash on hand: 150000 $ · Monthly expenses (burn): 35000 $ · Monthly revenue: 15000 $
| Runway | 7.5 |
| Net monthly burn | $20,000 |
| Months until cash runs out | 7.5 |
Worked example
With $150,000 in the bank, $35,000 of monthly expenses, and $15,000 of monthly revenue, your net burn is $35,000 minus $15,000, or $20,000 a month. Dividing $150,000 by $20,000 gives 7.5 months of runway. That is the window in which you need to either raise more, cut burn, or grow revenue enough to close the gap, and it should drive your urgency.
Frequently asked questions
What is net burn versus gross burn?
Gross burn is your total monthly expenses; net burn subtracts revenue from expenses. Runway is based on net burn, since revenue offsets some of what you spend. This calculator uses net burn.
What if revenue exceeds expenses?
Then your net burn is zero or negative, you are cash-flow positive, and runway is effectively unlimited from operations. The calculator returns zero months of burn in that case.
How much runway should I keep?
A common target is 12 to 18 months, enough to hit milestones and raise the next round without negotiating from desperation. Below six months, cost cuts or fundraising usually become urgent.
Does runway account for growing expenses?
This is a snapshot at your current burn. If you plan to hire or spend more, model runway with your expected future burn, since rising expenses shorten runway faster than a flat estimate suggests.