Free tool
Startup runway and burn rate calculator
Runway is cash divided by net burn, where net burn is monthly spend minus monthly revenue. A startup with $1,200,000 in the bank, $40,000 in revenue and $140,000 in spend burns $100,000 a month and has 12 months of runway. Add growth rates to see the month cash runs out, or the month revenue covers spend first.
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.
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.
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.