Board Deck Burn & Runway Calculator 2027
Burn rate and runway are the two numbers every board asks first. In 2027 most funds want 24 months of runway before opening a Series B conversation — far stricter than the 12-month minimum from 2021. This tool models cash, burn trend, and runway under three scenarios.
Why 24 Months of Runway Is the New Standard
2021's 12-month minimum stretched to 18 in 2023 and 24 in 2026. Reason: longer fundraising cycles (9-12 months) plus tighter diligence means founders need cushion to walk away from bad term sheets. Boards now ask runway every quarter.
Burn Multiple Math
Burn multiple = net cash burn ÷ net new ARR. A burn multiple of 1.0 means $1 burned for every $1 of new ARR — the David Sacks benchmark for healthy SaaS. Above 2.0 signals overspending. Top-quartile SaaS hits 0.5 (twice as much ARR added as cash burned).
How To Extend Runway
Three levers: (1) Cut non-essential headcount (highest impact, hardest decision). (2) Reduce cloud + tools spend through Reserved Instance commits + Stack rationalization (typical 15-25% savings). (3) Push payment terms — annual prepay at 10% discount improves cash position without changing ARR. Skip discretionary marketing experiments until path-to-payback is proven.
Source: SVB State of the Markets Q1 2026, Carta Burn Multiples Report 2026. Last updated: May 2026.