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What is Startup Runway?
Runway is how long your startup can survive before running out of money. It's one of the most critical numbers a founder must know at all times.
Net Burn = Monthly Expenses − Monthly Revenue
Runway = Cash on Hand ÷ Net Monthly Burn
Runway = Cash on Hand ÷ Net Monthly Burn
The 18-Month Rule
Most experienced investors and founders recommend maintaining at least 18 months of runway at all times. If you're below 12 months, you should be raising or cutting costs immediately — fundraising takes 3-6 months.
What's the difference between gross burn and net burn?
Gross burn is your total monthly expenses. Net burn is expenses minus revenue — the actual cash you're consuming each month. This calculator uses net burn, which gives your true runway.
When should I start fundraising?
Start fundraising when you have 9-12 months of runway left — not when you're desperate. Fundraising from a position of strength (plenty of runway) results in better terms and less pressure.
What counts as cash on hand?
Include your checking and money market accounts. Do not include credit lines, receivables you haven't collected, or equity. Be conservative — use actual bank balance today.