Runway Calculator
Runway is one of the most critical numbers for any startup or early-stage company. It tells you exactly how many months of operating life remain at the current pace of spending, given the cash on hand. Founders, investors, and board members track runway closely because it defines the fundraising window and the urgency of cost management decisions. This calculator takes your current cash balance, total monthly outflows (gross burn), and monthly revenue to derive net burn and then divide it into cash to produce runway in months. It also projects the approximate date when cash will be exhausted, giving you a concrete deadline to plan around. Enter your numbers and instantly see how much time you have left.
Runway formula
Net Burn = Gross Burn - Monthly Revenue
Runway (months) = Current Cash / Net Burn
The cash-out date adds the runway months to today's date. If net burn is zero or negative, the company is cash-flow neutral or positive and has unlimited runway from operations alone.
Runway benchmarks
- Less than 6 months: critical - begin fundraising or cut costs immediately.
- 6 to 12 months: tight - initiate fundraising conversations now.
- 12 to 18 months: healthy - begin next round process in 6 to 9 months.
- 18+ months: strong - focus on growth before the next funding cycle.
Runway: frequently asked questions
What is startup runway?
Runway is the number of months a company can continue operating at its current burn rate before running out of cash. It is calculated by dividing current cash by net monthly burn rate.
How much runway should a startup have?
Most investors recommend maintaining at least 12 to 18 months of runway at all times. Before closing a funding round, aim for 18 to 24 months so you have time to execute and fundraise again.
What happens when a startup runs out of runway?
When cash is depleted and no new funding is secured, the company must shut down, be acquired, or find an emergency bridge loan. Running out of runway is the most common cause of startup failure.
How can I extend my runway?
Reduce headcount costs, defer non-essential spend, increase revenue, raise a bridge round, or negotiate extended payment terms with suppliers. Each dollar saved in monthly burn adds roughly one month of runway per $1 of net burn.
Should I use gross or net burn to calculate runway?
Use net burn (monthly outflows minus monthly revenue). Gross burn gives a conservative upper bound. Net burn reflects reality because revenue offsets cash outflows each month.
Sources
- U.S. Small Business Administration: Manage Your Finances.
- U.S. Securities and Exchange Commission: Investor Bulletins.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.