Startup Runway Calculator

What is Startup Runway?

Startup runway is the amount of time your company can operate before running out of cash, calculated as your cash balance divided by your monthly burn rate. It's one of the most critical metrics for startups because it determines how long you have to achieve profitability, reach key milestones, or raise additional funding.

Maintaining adequate runway (typically 18-24 months) is essential for startup survival and growth. Startups with less than 12 months of runway face significant risk and difficulty fundraising. Understanding your runway helps you make informed decisions about spending, hiring, and fundraising timing. For SaaS businesses, use our MRR/ARR Growth Calculator to project how recurring revenue growth affects your runway.

How to Use This Calculator

Enter your current cash balance, monthly revenue, monthly expenses, and expected growth rates for revenue and expenses. The calculator shows your current burn rate, months of runway remaining, runway end date, and when you'll reach breakeven (if applicable).

Use the chart to visualize how your cash balance changes over time. If you're burning cash, the line will trend downward. If you're profitable, it will trend upward. This helps you understand your path to profitability or when you need to raise more capital.

Formula Explained

The runway calculation accounts for cash, revenue, and expenses:

The calculation projects cash balance month-by-month, accounting for:

• Revenue Growth: How revenue increases over time
• Expense Growth: How expenses change over time
• Burn Rate: Net cash outflow each month

Source: Startup Finance - Runway and Burn Rate Calculations

When to Use This Calculator

Use this calculator when planning startup finances, preparing for fundraising, or making spending decisions. It's essential for understanding how long your cash will last, when you need to raise more funding, and when you'll reach profitability. For revenue projections, use our Revenue Growth Calculator to see how revenue growth extends your runway.

Startup founders and investors use runway calculations to make critical decisions about spending, hiring, product development, and fundraising timing. It's one of the first questions investors ask and a key metric for board meetings.

Tips for Best Results

• Maintain 18-24 months runway: This gives you time to execute plans and raise funding without desperation. Less than 12 months makes fundraising very difficult.
• Start fundraising early: Begin fundraising 6-9 months before runway ends. Fundraising takes 3-6 months, and you need buffer time. Having runway remaining improves your negotiating position.
• Monitor burn rate closely: Track burn rate monthly and understand what drives it. Unexpected expenses can quickly reduce runway.
• Extend runway strategically: Reduce expenses or increase revenue to extend runway before fundraising. This improves your position and reduces urgency.
• Plan for different scenarios: Model best case, expected, and worst case scenarios. Understand how changes in revenue or expenses affect your runway.
• Project revenue growth: Use our Revenue Growth Calculator to see how revenue growth can extend your runway and reduce burn rate.

Frequently Asked Questions

Related Calculators