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Startup Runway & Burn Calculator

Instantly calculate your startup's survival timeline. Understand your cash burn rate and visualize your financial runway.

Salaries, rent, software, marketing, etc.

MRR or average monthly sales.

Estimated Runway

16.7 months

Net Monthly Burn

$30,000/mo

Gross Burn

$45,000

Revenue

$15,000

12-Month Cash Projection

Assumes expenses and revenue remain constant over the next 12 months.
Month 0: $500,000
M0
Month 1: $470,000
M1
Month 2: $440,000
M2
Month 3: $410,000
M3
Month 4: $380,000
M4
Month 5: $350,000
M5
Month 6: $320,000
M6
Month 7: $290,000
M7
Month 8: $260,000
M8
Month 9: $230,000
M9
Month 10: $200,000
M10
Month 11: $170,000
M11

Understanding Startup Runway and Cash Burn

For early-stage startups and small businesses, cash is oxygen. Running out of cash is the number one reason startups fail. Our Startup Runway & Burn Calculator is a client-side tool designed to help founders instantly visualize their financial trajectory without sharing sensitive financial data with third-party servers.

What is Cash Burn Rate?

Your burn rate is the speed at which your company is losing money. There are two important distinctions to make:

  • Gross Burn Rate: The total amount of money you spend each month. This includes salaries, server costs, marketing, office space, and legal fees.
  • Net Burn Rate: This is the true metric of survival. It is calculated as Gross Expenses - Revenue. If you spend $50k a month but make $20k, your Net Burn is $30k. This is the amount of cash draining from your bank account every 30 days.

Calculating Your Runway

Your "Runway" is simply how many months your company can survive before its bank account hits zero, assuming revenue and expenses stay exactly the same. The formula is straightforward:
Runway = Total Cash on Hand / Net Burn Rate.

Venture Capitalists generally want to see startups maintain at least 12 to 18 months of runway. If your runway drops below 6 months, you are in the "Danger Zone" and must urgently cut costs, increase revenue, or raise emergency funding.

Default Alive vs. Default Dead

Coined by Y Combinator founder Paul Graham, these terms describe a startup's trajectory:

  • Default Alive: Assuming expenses remain constant, your revenue growth will allow you to reach profitability before your cash runs out.
  • Default Dead: If nothing changes, you will run out of money before becoming profitable.

If our calculator shows your runway as "Infinite", congratulations—your revenue exceeds your expenses. You are profitable, generating free cash flow, and are completely "Default Alive".