Runway Calculator
Determine remaining startup survival time. This calculator divides your liquid cash reserves by your monthly net burn rate, calculating exact months of operational runway remaining and establishing critical milestones for new fundraising or reaching profitability.
Available liquid cash across bank accounts
Monthly net cash deficit (Expenses - Revenue)
Months of operational survival remaining at current burn rate
How to Use This Calculator
- Enter current total cash balance from your business bank accounts.
- Enter average monthly net cash deficit (net burn rate).
- Review remaining runway months and health status classification.
- Initiate external venture fundraising rounds when runway reaches 6 to 9 months.
Formula & Calculation Methodology
Divides unencumbered bank balance by net monthly cash deficit to forecast remaining operational survival time.
Worked Example
$450,000 cash reserves burning $30,000 net monthly
Frequently Asked Questions
How many months of runway should a venture-backed startup maintain?↓
Startups should ideally maintain 18 to 24 months of runway following a funding round. Because enterprise B2B fundraising typically requires 6 to 9 months to close, founders must begin fundraising with at least 9 months of runway remaining.
What happens when startup runway drops below 6 months?↓
Below 6 months, founders enter the "red zone" where investor leverage increases drastically, forcing down-rounds or punitive bridge notes. Founders must cut discretionary expenses to extend runway.
How does hiring new employees accelerate runway reduction?↓
Every new engineering hire adds $12,000 to $18,000 in fully loaded monthly burn (salary, payroll tax, health benefits, software seats), permanently shrinking future runway months.
What is the "Zero-Cash Date" (ZCD)?↓
The Zero-Cash Date is the exact calendar date when bank balances reach $0 if expenses and revenue remain unchanged, representing the hard deadline to close capital or reach breakeven.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.