Free tool

Startup runway calculator: the month your cash runs out

Runway is cash divided by net burn, which is monthly spend minus revenue. With $1,200,000 in the bank, $40,000 of revenue and $140,000 of spend, net burn is $100,000 and runway is 12 months. Add growth rates to see the month you hit zero, or when revenue covers spend.

Your numbers this month

$
$

Cash collected, not bookings

$

Everything that leaves, payroll included

%
%

Runway

12 months

Cash runs out during month 13 at these rates

Net burn a month
$100,000
Gross burn a month
$140,000
Revenue covers spend
Not within 5 years

Default dead at these rates: the cash runs out before revenue covers spend.

TodayMonth 13
$1,200,000 lasts 12 months at $100,000 of net burn

Assumes $40,000 of revenue and $140,000 of spend a month, with no growth. Runway is cash divided by net burn.

How it's calculated

  • Net burn is this month's spend minus this month's revenue. Gross burn is spend alone.
  • Each month, revenue and spend grow by the rates you enter, and the month's net is added to cash.
  • Runway is the number of whole months before cash goes below zero, up to 60 months.
  • You are default alive when revenue covers spend before the cash runs out.
Runway from real books: Accountable's home screen shows months of runway from reconciled cash and a 3-month average of net burn, for the demo company Northwind Labs.

Questions founders ask

Should I use last month's burn or an average?

Use the average of the last 3 months. One month can swing with an annual payment or a large invoice, and a 3-month average is what most investors expect.

Do loans and equity raises count as revenue?

No. Money raised or borrowed adds to cash, not revenue, so it lengthens runway without lowering burn.

What runway should a startup have?

Many investors advise raising with 12 to 18 months of runway left, since a round often takes 3 to 6 months to close.

What does default alive mean?

Paul Graham's term for a startup whose revenue growth covers its spend before the cash runs out, with no new money. Enter your growth rates and the calculator says which one you are.

How do I lengthen runway without raising?

Lower net burn: cut spend that does not drive revenue, collect invoices faster, or move annual vendor payments to monthly. Each $10,000 of monthly net burn removed adds months in proportion to the cash you hold.

Rules from, checked November 4, 2026:

  1. Paul Graham: Default Alive or Default Dead? (2015)