How do you calculate startup runway?

Startup runway is calculated by dividing your current cash balance by your monthly net burn rate (expenses minus revenue). For example, $500K cash with $50K monthly burn = 10 months of runway.

What is a good runway for a startup?

Most VCs recommend 18–24 months of runway after a fundraise. At minimum, aim for 12 months. Start fundraising when you have 6–9 months of runway remaining.

What is net burn rate?

Net burn rate is your total monthly expenses minus monthly revenue. If you spend $80K/mo and earn $30K/mo, your net burn is $50K/mo. This determines how fast you consume cash.

Free Tool

Runway Calculator

See how long your cash lasts — and when you need to raise. Built for SaaS startups.

Runway Calculator

Adjust inputs to model your cash runway

Current Cash Balance ($)Monthly Expenses ($)Net burn = expenses − revenueMonthly Revenue ($)

Cash Balance Projection

Projected cash over 24 months

Monthly Burn Rate

Gross burn with average reference line

Runway (Months Remaining)

Based on current net burn rate

months remaining

Caution

Revenue vs Expenses

Monthly revenue compared to total expenses

Your runway of 14 months is in the caution zone. Consider optimizing burn rate or raising capital.

Cash Balance

$500,000

Monthly Burn

$50,000

Runway

14 months

Revenue

$15,000

Expenses

$50,000

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Frequently Asked Questions

How do you calculate startup runway?: Startup runway is calculated by dividing your current cash balance by your monthly net burn rate (expenses minus revenue). For example, $500K cash with $50K monthly burn = 10 months of runway.
What is a good runway for a startup?: Most VCs recommend 18–24 months of runway after a fundraise. At minimum, aim for 12 months. Start fundraising when you have 6–9 months of runway remaining.
What is net burn rate?: Net burn rate is your total monthly expenses minus monthly revenue. If you spend $80K/mo and earn $30K/mo, your net burn is $50K/mo. This determines how fast you consume cash.

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