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Startup Runway Calculator

Runway is how long your cash lasts at current net burn. Enter your bank balance, burn, and revenue; get months remaining and the date you hit zero.

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Optional

Net burn
$45,000
Burn minus revenue
Runway
11.1 mo
At current net burn
Zero date
2027-07-02
When cash reaches zero
Rule of thumb: raise when runway drops below 9 months.

The formula

Runway in months equals cash on hand divided by monthly burn minus monthly revenue. If revenue meets or exceeds burn, runway is effectively infinite.

FAQ

What counts as monthly burn?+

Every cash out the door: payroll (with employer taxes and benefits), rent, software, contractors, cloud, ads, refunds. Not accruals, not depreciation.

Should I use gross or net burn?+

Use net burn (burn minus revenue) for runway. Use gross burn to see the cost side alone.

When should I start raising?+

A common rule: start when you cross 9 months of runway; close before you drop below 6.

Does this include accounts receivable?+

No. Cash on hand means money in the bank you can spend today. Receivables that convert reliably can be added, but be conservative.

What if I am profitable?+

Net burn is zero or negative. Runway is infinite; the calculator shows "Profitable".

Sources

  1. Y Combinator Startup Library: Managing Runway
  2. SaaStr: Runway Basics
  3. Bessemer State of the Cloud

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