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Runway Calculator

Runway converts a cash balance and a burn rate into the most important question a growing company asks: how much time is left before the cash runs out.

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Runway

14.0 mo

What This Means

Burning $40000 this month against a $560000 current balance. This assumes burn stays flat, so it's worth rechecking whenever spending changes meaningfully.

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The Formula

Runway = Ending Cash Balance / (Starting Cash Balance − Ending Cash Balance)

Same formula as Current Cash Balance divided by Monthly Burn Rate, just derived from the two cash readings you'd pull directly from a bank statement instead of a pre-calculated burn rate figure.

Why It Matters

Runway is the number that sets the real deadline on every other decision, from hiring to fundraising timing to how aggressively acquisition spend can scale. Watching it monthly, rather than only when it feels urgent, is what turns a fundraise into a planned event instead of a scramble.

Example

A company starts the month with $600,000 in cash and ends with $560,000, a $40,000 burn rate. Runway is $560,000 divided by $40,000, which equals 14 months.

Frequently Asked Questions

  • Yes. This calculation assumes the current monthly burn rate holds steady, so it should be recalculated whenever burn changes meaningfully, such as after a hiring round or a spending cut.

  • Many startups aim to keep at least 12 to 18 months of runway on hand, giving enough time to hit milestones or raise again before cash becomes a crisis.

Related Calculators

Burn Rate Calculator

From the Glossary

RunwayBurn RateFree Cash Flow
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