Startup Runway Calculator
Forecast your startup's remaining cash runway in months, net burn rate, zero-cash date, and evaluate whether your company is default alive based on MRR growth.
Cash Reserves & Burn Parameters
Payroll, SaaS, servers, office, marketing
Monthly recurring billings & customer receipts
Zero-cash projected date: October 2027
-$20,000
$20,000/mo
What is "Default Alive"?
Coined by Y Combinator founder Paul Graham, a startup is Default Alive if its current revenue growth rate will allow it to achieve profitability before its remaining cash reserves are depleted, without needing to raise additional venture capital.
How Startup Runway and Burn Rate are Measured
Cash runway is the amount of time a company has before it runs out of money, assuming revenue and expenses stay on their current trajectory:
- Gross Burn Rate: The total amount of cash your company spends each month on operations (salaries, software, rent).
- Net Burn Rate: Total expenses minus total revenue received. This is the actual amount of cash leaving the bank account each month:
Net Burn = Monthly Expenses - Monthly Revenue - Runway (Months): Current cash balance divided by monthly net burn:
Runway = Total Cash / Net Burn Rate
How to Use Startup Runway Calculator (Step-by-Step)
Enter your current cash balance in bank reserves.
Input monthly recurring revenue (MRR) and monthly operating expenses (burn).
Optionally enter your projected monthly revenue growth percentage.
Review your net burn rate, runway in months, and projected zero-cash date.
Applications
Common Use Cases
- Forecast runway length before raising your next funding round or reaching profitability.
- Model how hiring, marketing spend, or cost reductions impact your zero-cash date.
- Calculate the monthly revenue growth rate required to eliminate net burn.
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Your data never leaves your device and cannot be viewed, stored, or harvested by anyone.
Startup Runway & Cash Burn Rate: Formulas, Metrics & Financial Survival Guide
A founder guide to measuring startup runway, calculating net monthly cash burn, and stress-testing financial models against revenue growth scenarios.
FAQ
Frequently Asked Questions
What is the difference between gross burn and net burn?
Gross burn is the total money your startup spends in a month. Net burn is gross burn minus incoming revenue, representing actual monthly cash depletion.
How many months of runway should an early-stage startup maintain?
Venture capitalists and founders typically recommend maintaining at least 18 to 24 months of runway, allowing 12 months for execution and 6 months for fundraising.
How does revenue growth extend startup runway?
If revenue grows faster than operating expenses, net monthly burn decreases over time, bending the cash depletion curve outward and postponing the zero-cash date.
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