Calculate Your Runway
📅 Key Milestones
How to Use This Calculator
Enter your current cash balance and monthly burn rate (total expenses minus revenue, or gross burn). Optionally add current monthly revenue and expected growth rate to see how approaching profitability extends your runway.
- Cash Balance: Total cash available (bank accounts, liquid investments)
- Burn Rate: Monthly operating expenses (payroll, rent, software, marketing, etc.)
- Revenue: Monthly revenue offsets burn, extending runway
- Growth: Monthly revenue growth compounds over time
Understanding Burn Rate & Runway
Burn rate is how much cash your company spends each month beyond what it earns. Runway is how many months you can operate before running out of money.
The Formula
Runway (months) = Cash Balance ÷ Net Burn Rate
Net Burn Rate = Monthly Expenses − Monthly Revenue
Runway Benchmarks
- 18+ months: Healthy — time to grow and raise at favorable terms
- 12-18 months: Adequate — start planning your next fundraise
- 6-12 months: Warning — actively fundraise or cut costs
- <6 months: Critical — immediate action required
Tips for Extending Runway
- Cut non-essential expenses (unused subscriptions, excessive perks)
- Renegotiate vendor contracts and payment terms
- Focus on revenue-generating activities
- Consider bridge financing or revenue-based financing
- Delay hiring or reduce team size if necessary
Frequently Asked Questions
What's the difference between gross and net burn rate?
Gross burn is total monthly expenses regardless of revenue. Net burn is expenses minus revenue — the actual cash drain. This calculator uses net burn (expenses - revenue) for runway calculations.
How much runway should a startup have?
Most investors recommend 18-24 months of runway after a funding round. This gives you time to hit milestones and raise again without desperation. Early-stage startups often operate with 12-18 months, but less than 6 months is considered critical.
How do I reduce burn rate quickly?
The biggest expenses are usually payroll (60-80% for most startups), followed by rent/office space, software subscriptions, and marketing. A hiring freeze, contractor reductions, or office downsizing often have the largest immediate impact.
Should I include accounts receivable in cash balance?
Generally no — only include actual cash in bank. AR can be slow to collect or may have bad debt. If you have very reliable AR (like contracted enterprise payments), you might include a conservative portion.
Privacy & Limitations
- All calculations run entirely in your browser -- nothing is sent to any server.
- Results are estimates for planning purposes and should not replace professional financial advice.
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Burn Rate Runway Calculator FAQ
What is Burn Rate Runway Calculator?
Burn Rate Runway Calculator is a free finance & money tool that helps you Visualize startup runway from cash balance and monthly burn rate.
How do I use Burn Rate Runway Calculator?
Enter your input values, review the calculated output, and adjust inputs until you reach the result you need. The result updates in your browser.
Is Burn Rate Runway Calculator private?
Yes. Calculations run locally in your browser. Inputs are not uploaded to a server by default, and refreshing the page clears session data.
Does Burn Rate Runway Calculator require an account or installation?
No. You can use this tool directly in your browser without sign-up or software installation.
How accurate are results from Burn Rate Runway Calculator?
This tool applies standard formulas or deterministic processing logic for estimates. For medical, legal, tax, or investment decisions, verify with a qualified professional.
Can I save or share outputs from Burn Rate Runway Calculator?
You can bookmark this page and copy outputs manually. Results are not persisted in your account and are typically not embedded in the URL.