Business Tools

Startup Runway Calculator

Calculate how many months before your startup runs out of cash

Last updated: How we build & verify
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How it works

Converts the cash balance and monthly net burn into the number of months before the money runs out. Runway drives every timing decision a founder makes: when to raise, when to hire, and when to cut.

Formula
Runway (months) = Cash on hand / Net monthly burn
Variables
  • Cash on handaccessible bank balance, excluding restricted or escrowed funds
  • Net monthly burncash out less cash in, averaged over recent months
Worked example
Inputs: $1,400,000 in the bank, $125,000 net monthly burn
  1. 1,400,000 / 125,000
Result: 11.2 months of runway
Notes
  • A flat-burn calculation is optimistic if you are hiring. Model runway against the planned burn curve, since a hiring plan can shorten 11 months to 7 without any surprise.
  • Fundraising takes 3 to 6 months from first meeting to wired funds, so 12 months of runway means you should already be preparing to raise.
  • Growing revenue extends runway non-linearly, because each month reduces net burn. Default alive means the curve reaches breakeven before the cash reaches zero.
  • Subtract genuine commitments before dividing: severance obligations, remaining lease term, and any accrued tax liability are cash you no longer control.

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Frequently Asked Questions

Yes. Startup Runway costs nothing, needs no account, and runs right in your browser. There is no paywall, no watermark on the results, and no limit on how many times you can run the numbers.

Startup Runway uses the standard formula for this kind of calculation, so the output is only as good as the figures you type in. Rates, fees, and rules in finance shift over time, and we review the underlying assumptions on a regular schedule; check the "Last reviewed" date above for the most recent pass. Spotted something off? There's a feedback button in the bottom-right corner.

Startup Runway Calculator | ExaCalc