Business Runway Calculator
Calculate how many months your business can operate with current cash reserves at your current burn rate. Plan fundraising timing and scenario-plan different revenue or cost situations.
💰 Startup Finance💼 Runway = Cash on Hand / Monthly Net Burn
Cash on hand / bank balance ($)
Monthly net burn rate ($)
Expected monthly revenue growth ($)
One-time expenses expected ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Business Runway Calculator | Runway = Cash on Hand / Monthly Net Burn | months |
Step-by-Step Examples
Example 1
Typical Seed Stage
$750k cash, $45k net burn, $5k/mo revenue growth, $30k one-time.
- Adjusted cash: $720k
- Flat runway: 16 months
- With $5k/mo growth: extended further
✓ 16 months flat, longer with revenue growth
Example 2
Pre-Seed Tight
$250k cash, $30k burn, no revenue growth, $0 one-time.
- Runway: $250k/$30k = 8.3 months
- Under 12 months - urgent! Must cut costs or fundraise immediately
✓ 8.3 months - raise or cut immediately
Example 3
Series A Ready
$3M cash, $150k burn, $20k/mo revenue growth.
- Flat runway: 20 months
- With growth: extended significantly
- Comfortable position for Series A fundraise
✓ 20+ months - solid Series A runway
Real-World Applications
Founders
Know your runway at all times and trigger fundraise with enough cushion.
Investors
Runway context frames all other startup metrics in due diligence.
CFOs
Model best/base/worst case runway scenarios for board reporting.
Advisors
First question to ask any startup founder facing financial stress.
Common Mistakes to Avoid
⚠️
Not updating runway monthly
Runway changes every month as revenue grows and costs fluctuate. Update your calculation monthly and alert leadership at 12-month threshold.
⚠️
Assuming flat burn in projections
Revenue growth and new hires change burn rate. Model realistic increasing burn (hiring plan) alongside revenue growth.
⚠️
Forgetting accounts receivable delay
Revenue recognized may not equal cash received. Factor in collection timing, especially for B2B with net-30/60 terms.
Frequently Asked Questions
What runway should I target before raising? ▾
18 months ideal; 12 months minimum. You need 3-6 months to close a round and want 9-12 months remaining post-close to execute without distraction.
How do I extend runway without raising? ▾
Cut non-essential spend, pause lower-ROI marketing, renegotiate vendor contracts, defer equity-eligible employees' salary to equity (with consent), or accelerate revenue through pricing or upsells.
What is zero cash date (ZCD)? ▾
The date your current cash reserves will be exhausted at your current burn rate. Always know your ZCD and maintain 12+ months of buffer.
Should runway affect hiring decisions? ▾
Absolutely. Each hire adds to monthly burn. With 12 months runway, hiring 3 people at $10k/month each reduces runway significantly. Prioritize revenue-generating roles.
What metrics do investors look at alongside runway? ▾
MRR growth rate, burn multiple (net burn / net new MRR), runway, and path to profitability or next milestone.