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Runway & Burn Calculator

Model your runway with real numbers. Toggle hiring, churn, and revenue scenarios to see how each decision shifts your survival timeline.

From Raise Ready by Yanni Papoutsi

Runway is the number one metric founders obsess over. How many months until we run out of cash? But most founders calculate it wrong. They guess at burn, overestimate revenue, or don't model how hiring or revenue changes shift the timeline. The result: they think they have more time than they actually do.

This calculator takes your actual cash, monthly burn, and revenue, then models scenarios—new hires, cost cuts, revenue changes—to show exactly how long you can operate. See your zero-cash date and get specific guidance on whether your runway position is critical, caution, healthy, or strong.

Enter Your Numbers

Toggle scenarios to model changes:

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Months of Runway
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Net Monthly Burn
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Cash Zero Date

How to Read Your Results

Runway is measured in months. The calculator compounds your revenue growth month-to-month, assuming it continues at the rate you enter. The zero-cash date tells you exactly when you'll run out of money if nothing changes. The advisory note categorizes your runway position: Critical (less than 6 months), Caution (6-12 months), Healthy (12-18 months), or Strong (18+ months).

Startup Runway Benchmarks

Runway benchmarks vary by stage and situation, but these ranges reflect typical healthy positions:

Critical
< 6 months
Do not fundraise from this position
Caution
6-12 months
Begin fundraise preparations now
Healthy
12-18 months
Good position to fundraise
Strong
18+ months
Selective on timing and terms
Self-Funding
Infinite
Revenue exceeds burn
Typical Round
3-6 months
Time to close a fundraise

Common Mistakes When Calculating Runway

Forgetting Variable Costs in Burn Rate

Many founders only count fixed costs (salaries, rent) and forget variable costs scale with revenue. Payment processing, hosting, customer support—these all increase as you grow. Add them to burn or you'll overestimate runway.

Not Accounting for Growth in Revenue

If revenue is growing 10% month-over-month, your burn gets "offset" more each month. The calculator compounds this. But be conservative—if growth is sporadic or seasonal, use a lower number or zero.

Using "Average" Burn Instead of Current Burn

Use your current monthly burn rate, not a 3-month average. Burn often trends up (hiring, infrastructure) or down (cost cuts). The trend matters more than history.

Forgetting One-Time Expenses

Tax bills, insurance renewals, equipment purchases, legal fees—these hit in specific months. Budget for them. If you have a known big expense coming, model it into your burn or reduce your runway estimate.

Frequently Asked Questions

Most investors want to see 12-18 months of runway before you start fundraising. This gives you time to close a round (3-6 months) without running into critical cash shortfall. Less than 12 months puts you in a weaker negotiating position. Below 6 months is critical—you should be in fundraise mode or cutting costs.
Burn rate depends on stage and growth. Seed-stage companies burning $50-150K/month are common. Series A companies often burn $150-500K/month as they scale. The key metric isn't the absolute burn—it's burn multiple. Your net burn divided by net new ARR should be below 3x for healthy unit economics.
Monthly burn rate = total monthly expenses minus monthly revenue. It's your net monthly cash outflow. Calculate this from your actual P&L each month. If you burned $100K in expenses and made $30K in revenue, your burn is $70K. Track this consistently every month to see trends.
Start fundraising when you have 12-18 months of runway remaining. Below 12 months, you're rushed and investors can sense it. Below 6 months, you're in crisis mode and investors will use it to negotiate hard terms or pass entirely. If you have less than 6 months, focus on extending runway through revenue or cost cuts first.
Gross burn is your total monthly expenses. Net burn is expenses minus revenue. Net burn is what matters for runway—it's your actual cash outflow each month. If you spend $100K and make $30K, gross burn is $100K but net burn is $70K. The calculator uses net burn because that's what actually depletes your cash.

Go Deeper

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