Runway is a startup's lifeblood: how many months until cash reserves deplete? Your burn rate—monthly expenses minus revenue—determines survival. This calculator reveals your true runway and forces a hard deadline for reaching profitability or securing funding. Input your monthly expenses, current revenue, and cash on hand to see how many months you have before the money runs out. Many founders overestimate runway and miss the fundraising window until it's too late.
Growth trajectories matter more than the burn rate alone. A startup burning $100k/month might be sustainable if revenue grows 15% monthly; the same burn with flat revenue is a death spiral. This tool models growth scenarios—revenue increasing, expenses rising with scale—to project when (or if) you hit break-even. See how a 5% revenue acceleration extends your runway by months, buying time to prove the business model.
Investors ask three questions: "What's your burn rate?" "When's break-even?" and "How much runway does that funding give us?" Use this calculator to answer confidently. It projects the capital you need to reach profitability safely, typically aiming for 18–24 months of runway as a buffer. Avoid the trap of raising money too late—this tool shows you exactly when to start fundraising conversations.
Burn Rate: The Startup Metric That Matters Most
Burn rate = monthly expenses - monthly revenue. A startup with $50k/month expenses and $5k revenue burns $45k/month. With $500k cash, runway is 11 months. Investors ask: "What's your burn rate?" and "When are you cash-flow positive?" Lower burn = longer runway.
Runway: How Long Until You Run Out of Cash
Runway = cash / monthly burn. If you have $300k cash and burn $50k/month, runway is 6 months. That's your deadline to reach breakeven, raise funding, or cut costs. Most startups target 12–18 month runway as buffer.
Breakeven: When Revenue ≥ Expenses
Breakeven is when you no longer burn cash (revenue covers all expenses). Many startups never reach breakeven and require continuous funding. Sustainable growth = increasing revenue while controlling expense growth. Track both to find breakeven date.
Fundraising Strategy: How Much to Raise
Conservative: raise 18–24 months of cash (covers uncertainty). Typical: 12–18 months. Aggressive: 9–12 months (faster dilution but proves unit economics). Use the calculator to model: what funding amount gets you to profitability?
Controlling Burn: Revenue vs. Cost Reduction
Improve burn by: (1) Growing revenue (faster than expenses). (2) Reducing costs (headcount, contractors, tools). Most startups cut costs to extend runway, but growth is better long-term. Balance both.