What Is a Runway Calculator?
A runway calculator estimates how many months a startup or business can continue operating before running out of cash. It divides your available cash by your net monthly burn rate (expenses minus revenue). This metric is vital for founders, CFOs, and investors to understand the urgency of fundraising or reaching profitability.
How to Use This Runway Calculator
- Enter your current cash balance (bank account balance plus liquid reserves).
- Input your monthly burn rate (total monthly expenses).
- Optionally, enter monthly revenue to calculate net burn.
- Click “Calculate” to see your runway in months and the estimated cash-out date.
Gross Burn vs. Net Burn
Gross burn rate is your total monthly spending without considering revenue. Net burn rate subtracts revenue from expenses. If you spend $50,000/month and earn $20,000, your net burn is $30,000. Runway is calculated using net burn: Cash ÷ (Burn − Revenue). If revenue exceeds burn, you have infinite runway (profitability).
Runway = Cash ÷ (Burn − Revenue)
Frequently Asked Questions
How much runway should a startup have?
A common guideline is 12–18 months of runway. This gives enough time to hit milestones and raise the next round. Starting fundraising with fewer than 6 months of runway puts you in a weak negotiating position.
What if my revenue covers my burn rate?
If revenue equals or exceeds your burn rate, your net burn is zero or negative, meaning you are profitable and have effectively unlimited runway from an operations standpoint.