Runway Calculator

Estimate how many months your startup can operate at its current net burn and see a directional cash-depletion date.

Fast cash runway scenario planning

Calculate cash runway

Use unrestricted cash and a normalized monthly net burn rate.

Why startup runway matters

Cash runway translates a cash balance and burn rate into time. It helps founders decide when to raise capital, when to slow hiring, and whether the current plan leaves enough time to reach a meaningful product, revenue, or profitability milestone.

The simple calculation assumes burn remains constant. Real companies have changing payroll, annual software bills, revenue collections, taxes, and financing events, so use this result as a baseline and maintain a monthly cash forecast alongside it.

Runway formulaAvailable unrestricted cash ÷ average monthly net burn

Plan runway around milestones

A runway target is most useful when tied to decisions and measurable company progress.

01

Confirm available cash

Exclude restricted funds and amounts already committed to unavoidable payments.

02

Use normalized burn

Average recent months and incorporate signed hiring or spending commitments.

03

Add a safety buffer

Begin financing or cost action well before the mathematical zero-cash date.

Runway calculator FAQ

How much runway should a startup have?

The right buffer depends on risk and financing conditions. Many teams plan enough time to reach their next milestone plus several months for fundraising or corrective action.

Should expected fundraising count as available cash?

No. Treat financing as cash only after it has closed and funds are available. Build a separate scenario for possible future capital.

How can a startup extend runway?

Increase cash revenue, reduce or delay expenses, improve collections, renegotiate commitments, or raise capital before the buffer becomes too small.