How long does your cash last — and what happens when you hire? Enter your current balance, monthly costs, revenue, and planned headcount to get an exact month-by-month runway projection.
Most investors expect 18+ months of runway at the point of raise. This calculator shows your current runway, your fundraising trigger date (9 months before zero), and how planned hires compress it — so you can time your raise with precision.
| Month | Gross burn | Revenue | Net burn | Cash remaining |
|---|
What is a good startup runway?
18-24 months of runway is the standard target. With 18 months, you have time for a 3-6 month fundraising process plus 12 months of operating cushion. Anything below 12 months puts you in a distressed fundraising position. Aim to raise while you have 12-18 months remaining.
What is the difference between gross burn and net burn?
Gross burn is total monthly cash outflow. Net burn is gross burn minus revenue received. Investors focus on net burn when assessing runway. If you spend $100k/month but collect $40k MRR, your net burn is $60k and your runway is cash balance divided by $60k.
When should a startup start fundraising relative to runway?
Start fundraising when you have 9-12 months of runway remaining. A typical raise takes 3-6 months from first meeting to money in the bank. Beginning at 6 months is too late — you may run out of time before closing. This calculator marks your fundraising trigger date automatically.
How does hiring affect runway?
Each hire significantly compresses runway. A $150k/year engineer adds ~$15k/month gross burn including employer costs. Hiring 4 people could reduce a 20-month runway to 14 months. The standard advice: hire slower than you want to. Most early-stage founders regret fast hires, not delayed ones.
What does "default alive" mean?
Default alive (coined by Paul Graham) means your current growth and cost trajectory will reach profitability before cash runs out — without another raise. Default dead means you will run out of money before break-even. Most seed-stage startups are default dead by design — that is expected. Knowing your exact break-even month is a key investor readiness metric.
How do investors calculate startup runway?
Investors divide current cash balance by trailing 3-month average net burn rate. They often apply a 20-30% buffer for founder optimism (underestimated costs, overestimated revenue). For fundraising conversations, use conservative assumptions — being right beats being optimistic.
What is the Rule of 40 for startups?
Growth rate plus profit margin should equal or exceed 40. A company growing at 60% ARR can have -20% EBITDA. It is primarily used at Series B+. Early-stage investors focus on growth velocity rather than the Rule of 40 at pre-seed and seed.
How much should a seed-stage startup spend on salaries?
Salaries typically represent 60-80% of gross burn. A two-founder startup with two engineers might spend $50-80k/month on people costs alone. For a $1M seed raise, keeping to 4-6 people maximum usually gives 15-18 months runway. Each senior hire at $180k/year adds ~$18k/month including employer costs.