Runway Calculator
Calculate how many months your startup or business can operate before running out of cash. Enter your cash balance, monthly expenses, and revenue to see your runway and cash-out date.
How Startup Runway Is Calculated
Runway is the number of months a company can continue operating before running out of cash. It divides your current cash balance by your net monthly burn rate (expenses minus revenue). This metric is critical for founders, CFOs, and investors because it determines how much time you have to reach profitability, hit milestones, or raise the next funding round. Investors typically want to see 12-18 months of runway.
Runway Formula
Runway (months) = Cash Balance / Net Monthly Burn
Net Monthly Burn = Monthly Expenses − Monthly Revenue
Cash-Out Date = Today + Runway months
When to Start Fundraising
Begin fundraising when you have 6-9 months of runway remaining. The process typically takes 3-6 months from first meeting to money in the bank. Starting too late forces desperate negotiations and unfavorable terms. Starting too early may mean you lack the traction needed to command a strong valuation. Track your runway monthly and set calendar reminders at the 9-month and 6-month marks.
Extending Your Runway
There are two ways to extend runway: reduce expenses or increase revenue. Common cost-cutting measures include renegotiating vendor contracts, pausing hiring, and eliminating non-essential tools. On the revenue side, focus on faster sales cycles, price increases, or annual prepayment discounts. Reducing monthly burn by even 10-15% can add months of runway and significantly reduce fundraising pressure.