Startup Runway Calculator

Startup runway is the amount of time your company can operate before running out of money. It's calculated by dividing your current cash balance by your monthly net burn rate (expenses minus revenue). A startup with $500,000 in the bank and a $50,000/month burn rate has 10 months of runway.

Understanding your runway is critical for survival. It determines when you need to raise your next round, how aggressively you can grow, and whether you can afford to experiment with new products or markets. Most VCs expect startups to raise with at least 6-12 months of runway remaining.

This calculator goes beyond simple division by projecting how your runway changes as burn rate and revenue grow over time. A startup burning $50k/month with 15% monthly revenue growth has a very different trajectory than one with flat revenue.

Gross burn rate is your total monthly expenses - salaries, rent, software, marketing, everything that costs money. For most startups, payroll is 60-80% of gross burn. A team of 5 engineers at $150k/year averages $62,500/month in salary costs alone.

Net burn rate is gross burn minus revenue. If you spend $100k/month and make $30k, your net burn is $70k. This is the number that actually determines how fast your cash depletes. Pre-revenue startups have identical gross and net burn.

Watch out for one-time costs that distort your burn. A $50k conference sponsorship or $100k annual software contract can make one month look catastrophic. Calculate your “normalized” burn by spreading lumpy expenses across the year.

The conventional wisdom is to start fundraising when you have 6-9 months of runway remaining. This accounts for the typical 3-6 month fundraising process and gives you a buffer if things take longer than expected. Raising from desperation with 2 months left destroys your negotiating leverage.

Seed rounds typically take 2-4 months if you have warm intros and traction. Series A and beyond often take 4-6 months due to more extensive due diligence and larger check sizes. Bridge rounds can close in weeks if you have existing investor relationships.

The best time to raise is when you don't need the money. Hitting key milestones (product-market fit signals, revenue milestones, growth metrics) while you still have 12+ months of runway puts you in the driver's seat for valuation negotiations.

Cut costs strategically. Start with non-essential software, consultants, and perks. Renegotiate office leases or go fully remote. Delay hires that aren't critical to near-term revenue. But don't cut into muscle - keeping your best people and core product velocity matters more than a few extra months of runway.

Accelerate revenue. Can you charge annual instead of monthly (collect 12 months upfront)? Can you offer discounts for longer commitments? Can you upsell existing customers? Even small revenue improvements compound over your runway period.

Explore alternative financing. Revenue-based financing, venture debt, and government grants can extend runway without dilution. These work best for companies with predictable revenue or specific project needs.