Runway is the number of months your company can keep operating before the cash runs out. Enter your cash, revenue and expenses to see how long you have, and what happens if your costs keep growing.
Burn rate and runway
Your net burn rate is the amount of cash you lose each month: expenses minus revenue. Runway is your cash balance divided by that burn. If revenue covers all expenses you are not burning cash at all. This calculator goes a step further and lets expenses grow by a percentage every month, which is closer to how a hiring team behaves in practice.
The simple formula
- Net burn = monthly expenses – monthly revenue
- Runway (months) = cash in the bank / net burn
- With growing expenses, the tool simulates each month in turn until the balance reaches zero
Worked example
A startup has Rs 4,000,000 in the bank, earns Rs 150,000 a month and spends Rs 450,000, so its net burn today is Rs 300,000 and the simple runway is about 13.3 months. If expenses grow by 2% every month, the tool shows that the cash lasts about 12 months, because each month costs slightly more than the last.
What founders do with this number
Fundraising often takes three to six months, so many founders begin the process with at least nine to twelve months of cash left. If your runway is shorter than that, the usual choices are to cut costs, raise prices, collect receivables faster or bring forward a funding round. The dilution calculator on this site shows what a new round would cost you in ownership.
Frequently asked questions
Should I include one-off costs?
Include regular monthly costs. Add a large planned one-off expense, such as a new laptop fleet, by reducing your starting cash by that amount.
Does revenue growth change the answer?
This tool keeps revenue flat to stay conservative. If you expect revenue to grow, treat the result as a worst-case view.
What is a healthy runway?
There is no single rule, but most advisors suggest keeping at least twelve months, and starting to raise or cut costs when you drop below nine.
This calculator is provided for general information and planning only. It is not accounting, tax, legal or investment advice, and the results depend entirely on the numbers you enter. Please confirm important figures with a qualified professional.