Burn Rate and Runway Calculator

Enter current cash balance, monthly gross burn, and monthly revenue if any. Net burn equals gross burn minus revenue. Runway months equals cash divided by net burn. Default dead startups run out of cash before profitability at current net burn. Default alive reach breakeven before cash zero. Venture standard suggests eighteen months runway post raise to reach next milestone before follow on fundraising conversations begin in earnest. Start fundraising conversations when runway falls below six months not at zero cash because venture rounds require months to close from first investor meeting to wire. Begin active fundraise process near six months cash remaining based on typical venture close timeline from first meeting to wire transfer. Default alive versus default dead framing from Paul Graham essay maps directly to whether net burn reaches zero before cash balance hits zero at current trajectory without new equity injection.

Review gross burn, net burn, runway months, and zero cash date projection. Cutting burn ten percent extends runway more than proportional when net burn is small relative to gross. Bridge round planning often starts at six months runway remaining not zero. Default alive path reaches profitability before cash zero at current net burn trajectory without new capital injection. Separate gross burn line items in spreadsheet then enter monthly average gross burn here for cleaner runway projection than lumpy single month spike distortion. Plan fundraise start at six months runway remaining based on venture market typical close timeline experience. Separate one time legal severance spikes from recurring gross burn when entering monthly average for runway calculation accuracy improvement. Default alive path reaches profitability before cash zero at current net burn without requiring external capital injection in base case scenario. Gross burn includes all cash outflows while net burn subtracts revenue collected same month showing true cash consumption rate board tracks monthly. Zero cash date assumes flat burn but hiring plan or marketing ramp can step burn upward shortening runway nonlinearly before next fundraise close. Covenant restricted cash excluded from numerator misstates runway when lender requires minimum balance maintained at all times on credit facility. Scenario planning adds three months buffer to target runway because capital markets close unpredictably extending close timeline beyond optimistic four week estimate. Headcount is largest line item in most venture backed software companies so delayed backfill after attrition creates illusory runway extension unless hiring plan resumes at committed date in operating plan board approved last quarter meeting minutes record.

Test multiple burn scenarios side by side in the burn scenarios table to understand how hiring decisions and revenue ramps change your zero cash date. Sensitize gross burn upward twenty five percent before presenting runway to your board. Headcount is the largest line item in most venture backed software companies so delayed backfill after attrition creates illusory runway extension unless hiring plan resumes at committed date.

Use Burn Rate and Runway Calculator whenever inputs change: after market moves, new contributions, or revised personal assumptions. Bookmark the page for quick reruns without installing software.

Enter current cash balance, monthly gross burn, and monthly revenue if any. Enter the sample inputs described in How it works to reproduce the scenario step by step.

Adjust one input at a time to see sensitivity. Burn Rate and Runway Calculator updates instantly so you can stress test optimistic and conservative assumptions before acting.

Reach for Burn Rate and Runway Calculator when show startup life expectancy under varying monthly expense scenarios.. It suits quick what if analysis before trades, allocation changes, or plan updates.

Pair with related tools when the decision spans taxes, liquidity, or multi year projections beyond what one formula captures.

Copying outputs without checking input units or stale market prices is a frequent error with Burn Rate and Runway Calculator. Confirm tickers, percentages, and dates before acting.

Running a single baseline scenario ignores tail risks. Stress test with conservative inputs and compare against related tools listed below when the decision is material.

Net burn equals gross burn minus monthly revenue. Runway months equals cash divided by net burn. Assumes constant burn and revenue. Constant burn and revenue assumption. Step changes need scenario rows. Flat burn assumption. Step function burn cuts need scenario modeling. Venture standard eighteen month post raise runway target maps to starting fundraise near six months cash remaining. Educational estimates only not personalized advice consult qualified professional before major financial decisions. Educational estimates only not personalized advice consult qualified professional before major financial decisions. Educational estimates only not personalized advice consult qualified professional before major financial decisions. Educational estimates only not personalized advice consult qualified professional before major financial decisions. Burn Rate and Runway Calculator does not replace personalized advice. Fees, slippage, account specific rules, and behavioral constraints may change real world outcomes.

Find revenue breakeven with Bootstrapped Breakeven and project MRR growth with MRR Runrate on portfolios. Use those calculators when burn rate and runway calculator alone does not capture the full decision.

Internal links on portfolios.tools help you chain calculators: run Burn Rate and Runway Calculator first, then validate edge cases with a specialized tool from the related section below.