Startup Runway Month-by-Month Burn Calculator 2027
Calculate startup runway 2027 with burn multiple, default alive vs default dead status, and zero-cash date. Critical for fundraise timing in 2027 VC market.
Default Alive vs Default Dead
Paul Graham concept. Default alive: revenue + growth will cover burn before cash runs out (no raise needed). Default dead: even with growth, you can't make it. 2026-2027 VC market: be default alive or close to it.
Burn Multiple = Capital Efficiency
Burn / Net New ARR. <1 = exceptional. 1-1.5 = healthy. 1.5-2 = okay. >2 = warning. Best-in-class SaaS (post-product-market-fit) consistently <1.5.
18-Month Rule
Raise enough for 18-24 months operations. Past 18 the next round panic-pricing kicks in. Plan to start fundraise process when ~9-12 months runway left.
Static vs Growth-Adjusted
Static = cash / monthly burn (worst case). Growth-adjusted = factors in growing revenue offsetting burn over time. Always compute both. Show investors growth-adjusted, plan with static.
Source: paulgraham.com 'Default Alive or Default Dead', sequoia.com survival guides. Last updated: May 2026.
Frequently Asked Questions
What if burn varies month-to-month?
Use trailing 3-month average. Annual burns (Q4 sales, holiday SaaS slowdown) — normalize. Cash-out date matters, not avg burn.
Should I count debt as cash?
No. Equity-equivalent debt (venture debt drawn) counts. Undrawn line of credit doesn't. Only liquid cash actually available without conditions.
How does VC see burn multiple in 2027?
Critical screen. 2021 anything-goes era over. 2027 requires <2 burn multiple AND <12mo runway-to-payback OR investors pass.