Startup Runway Calculator
Calculate how many months of cash your startup has left. Know exactly when to start fundraising before you run out.
Total monthly costs (payroll, rent, SaaS, etc.)
Current MRR or monthly sales
MoM revenue growth rate — leave blank for flat burn model
What Is Startup Runway?
Runway is the number of months your startup can operate before running out of cash at your current net burn rate. It's the most important survival metric for any pre-profitability company. Knowing your runway tells you when you need to either raise more capital, reach profitability, or cut costs.
Runway = Current Cash ÷ Monthly Net Burn Rate (where Net Burn = Monthly Expenses − Monthly Revenue)
How Much Runway Do You Need?
- 18–24 months is the target benchmark. Enough time to execute a meaningful fundraising process and hit growth milestones.
- 12–18 months is acceptable but begin investor conversations now — fundraising takes 3–9 months.
- Under 12 months puts you in a difficult negotiating position. Investors know you're under pressure.
- Under 6 months is an emergency. Explore bridge loans, revenue acceleration, and immediate cost cuts in parallel.
The Fundraising Lead Time Rule
A full fundraising process — from first pitch to money in the bank — typically takes 3–9 months for seed/Series A, and sometimes longer. Experienced operators recommend starting the process when you have at least 6 months of runway remaining. Starting earlier (9–12 months out) gives you negotiating leverage and lets you say no to bad terms.
To model your MRR growth and understand when you might reach profitability, use the SaaS MRR Calculator. To evaluate your unit economics before pitching investors, see the Unit Economics Calculator.
Frequently Asked Questions
What is the difference between gross burn and net burn?
Gross burn is your total monthly expenses — what you spend each month regardless of revenue. Net burn is gross burn minus revenue — the actual cash reduction each month. Runway should always be calculated on net burn (cash actually leaving), not gross burn. A company with $100K expenses and $60K revenue has a $40K net burn and 12.5 months on $500K cash.
How do I extend my runway without raising?
The most impactful levers in order: (1) Accelerate revenue — close annual deals, push enterprise, launch new tiers. (2) Reduce payroll — the largest expense for most startups. (3) Cut discretionary spending — events, contractors, non-critical SaaS tools. (4) Negotiate payment terms — defer vendor payments, get customer prepayments. (5) Bridge round — smaller check from existing investors to buy 3–6 months.
What burn rate should I have for my stage?
Pre-seed (idea stage): $20–50K/mo. Seed (post-product): $50–150K/mo. Series A: $150–500K/mo. These are rough benchmarks — the right burn rate is one that generates sufficient growth to justify the next fundraise. Efficient companies raise less and burn less; the "always raise" mindset from 2021 has been replaced by a focus on burn multiples (net burn ÷ net new ARR).
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