Runway is the number of months until the cash runs out at the current rate of loss. Enter cash in the bank, monthly revenue and monthly expenses; the calculator shows the net burn, the runway and the month it ends. Add growth rates for revenue and expenses to project the balance month by month and see whether the business reaches break-even before the cash does.
Investors expect a raise to start with at least 12 months of runway left, because a round takes three to six months to close.
Cash Runway Calculator
Runway is how long a company can keep operating before the cash runs out. The cash runway calculator divides the cash in the bank by the net burn, which is monthly expenses minus monthly revenue. With $150,000 in the bank, $12,000 of monthly revenue and $30,000 of monthly expenses, the net burn is $18,000 and the runway is about 8.3 months.
Real businesses rarely burn cash at a constant rate, so the calculator also accepts monthly growth rates for revenue and expenses and projects the balance month by month. If revenue grows fast enough to overtake expenses, the projection reports the business as cash-flow positive instead of a runway. Investors and lenders generally want to see at least 12 to 18 months of runway; below six months, fundraising or cost cuts become urgent.
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Frequently Asked Questions
How is runway calculated?
cash ÷ (monthly expenses − monthly revenue). With revenue and expense growth the calculator projects the balance month by month instead.
What runway should a startup keep?
At least 12 months, ideally 18 to 24 after a funding round. Under 6 months means fundraising or cost cuts are urgent.
What if revenue grows faster than costs?
The projection reports the month the business becomes cash-flow positive instead of a runway.
