Startup Runway Calculator
Calculate your net monthly burn rate, remaining cash runway in months, and projected zero-cash date to plan your next funding round or achieve profitability.
$
Liquid, accessible cash in bank accounts
$
Total cash spent on payroll, cloud, rent, tools
$
Current collected monthly recurring revenue
%
Estimated month-over-month sales growth
Estimated Cash Runway
12.5 Months
Healthy Runway
Net Monthly Burn Rate
$20,000
Actual monthly cash outflow
Estimated Zero-Cash Date
November 2027
When current funds deplete
Break-Even Revenue Gap
$20,000 / mo
Added revenue needed for 0-burn
Recommended Fundraising Start
May 2027
6 months prior to cash depletion
Projected 12-Month Cash Depletion
Flat Expenses
| Milestone | Projected Revenue | Net Monthly Burn | Ending Cash Balance |
|---|
How to Use This Calculator
- Select Your Operating Currency: Choose from 8 global currencies ($ USD, € EUR, £ GBP, CAD, AUD, INR, JPY, or CHF). All currency figures update instantaneously.
- Enter Your Liquid Cash Reserves: Input total readily accessible cash currently held across all startup bank accounts and money market funds. Exclude illiquid assets or unpaid invoices.
- Input Operating Expenses & Inflows: Enter your total monthly gross expenses (payroll, founder stipends, SaaS licenses, marketing spend) and your current monthly recurring revenues.
- Optional Growth Modeling: If your monthly revenue is expanding, enter an estimated monthly growth percentage to model how expanding top-line revenue extends your operating runway.
- Plan Your Runway Timeline: Review your exact net burn, projected zero-cash calendar date, and the mandatory fundraising deadline to start your next capital round before runway enters danger territory.
The Formula
Startup runway measures the length of time in months a business can survive without securing additional venture capital, debt financing, or reaching cash-flow break-even.
Gross Burn Rate:
Gross Burn = Monthly Operating Expenses (Payroll + Rent + Cloud + Marketing + Overhead)
Net Burn Rate:
Net Burn = Monthly Operating Expenses - Monthly Collected Revenue
Cash Runway (Flat Revenue):
Runway (Months) = Current Liquid Cash Reserves / Net Monthly Burn Rate
Runway with Monthly Revenue Growth (g):
Cash(m) = Cash(m-1) - [Monthly Expenses - Revenue_0 × (1 + g)^m]
Runway = Month (m) where Cash(m) ≤ 0
Parameter Explanations:
- Gross Burn: The total raw capital leaving your accounts each month before accounting for any customer revenue.
- Net Burn: The true rate of cash depletion. If your revenue exceeds your operating expenses, your net burn is negative, meaning your company is "Default Alive" and self-sustaining.
- Zero-Cash Date: The projected calendar month when cash balances touch $0 if operations and growth remain on their current trajectory.
- Fundraising Window: Standard institutional fundraising takes 3 to 6 months to close. Starting a fundraise with less than 6 months of runway leaves the startup vulnerable to adverse term sheets or insolvency.
Example Calculation
Consider an early-stage SaaS startup that recently completed a pre-seed round with the following financial metrics:
Input Financials:
• Cash in Bank: $250,000
• Monthly Operating Expenses (Gross Burn): $25,000
• Monthly Recurring Revenue (MRR): $5,000
• Revenue Growth: 0% (Conservative Flat Baseline)
• Cash in Bank: $250,000
• Monthly Operating Expenses (Gross Burn): $25,000
• Monthly Recurring Revenue (MRR): $5,000
• Revenue Growth: 0% (Conservative Flat Baseline)
Step 1: Compute Net Monthly Burn Rate
Net Burn = $25,000 - $5,000 = $20,000 per month
Net Burn = $25,000 - $5,000 = $20,000 per month
Step 2: Calculate Runway Duration
Runway = $250,000 / $20,000 = 12.5 Months
Runway = $250,000 / $20,000 = 12.5 Months
Step 3: Establish Milestone Timeline
• Current Month: October 2026
• Zero-Cash Date: November 2027
• Recommended Fundraising Launch: May 2027 (6 months prior)
• Current Month: October 2026
• Zero-Cash Date: November 2027
• Recommended Fundraising Launch: May 2027 (6 months prior)
Health Assessment: With 12.5 months of runway, the startup is in the Healthy Runway tier (12–24 months), providing sufficient breathing room to hit product-market fit milestones.
Frequently Asked Questions
What is the formula for calculating startup runway?
Startup runway is calculated by dividing your total liquid cash balance by your net monthly burn rate (Monthly Operating Expenses minus Monthly Inflow Revenue). For example, having $250,000 cash with a $20,000 net monthly burn produces exactly 12.5 months of operating runway.
What is the difference between gross burn rate and net burn rate?
Gross burn rate measures the total cash spent on all operating costs each month, including salaries, cloud hosting, software tools, and marketing. Net burn rate subtracts incoming collected revenue from your gross expenses to show the actual net decrease in your bank account.
How many months of runway should an early-stage startup maintain?
Venture capitalists and financial advisors recommend maintaining 18 to 24 months of cash runway under current macroeconomic conditions. At minimum, a company should maintain at least 12 months of runway to comfortably execute growth experiments and allocate 6 months for the next fundraising cycle.
How does monthly revenue growth impact my runway timeline?
Compound monthly revenue growth systematically compresses your net monthly burn rate over time. If your revenues grow fast enough to surpass operating expenses before cash reserves hit zero, your startup achieves 'Default Alive' status and transitions into self-sustaining profitability.
When should a founder start raising the next funding round?
Founders should begin pitching and raising capital approximately 6 months before reaching their zero-cash date. Attempting to fundraise with fewer than 3 months of runway severely weakens deal negotiation leverage and creates catastrophic operational insolvency risk.