Runway
Estimate months of runway given current cash and net monthly burn. Formula: Runway = Cash ÷ Net burn. Use this calculator to understand how long your cash reserves last at the current burn rate. Enter cash on hand and net monthly burn (outflow minus inflow) to see runway in months.
What is startup runway?
Runway is the number of months your company can operate before cash runs out, given today’s net monthly burn. Use net burn (cash outflow minus cash inflow) rather than gross burn to avoid overstating risk.
Why runway matters
- Sets how much time you have to iterate, hire, and fundraise.
- Helps plan cost reductions or growth investments responsibly.
- Aligns stakeholders on timing for the next financing or breakeven.
How to calculate
Runway = Current cash ÷ Net monthly burn. If net burn ≤ 0, you have non‑negative burn and effectively infinite runway while that condition holds.
Example
With $100,000.00 in cash and $25,000.00/mo burn, runway ≈ 4.0 months.
Tips to extend runway
- Prioritize high‑ROI initiatives; pause low‑impact spend.
- Renegotiate contracts and consolidate tooling where feasible.
- Improve gross margin (pricing, packaging, lower COGS) to reduce burn.
FAQ
Is runway based on net or gross burn? Use net burn (outflow − inflow). Gross burn ignores inflows and overstates risk.
What’s a good runway? 12–18 months is common for SaaS to safely iterate and raise; longer if sales cycles are slow.
How often should I recalculate? Monthly, or anytime burn or cash position changes materially.