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Burn Rate & Runway Calculator

Net burn, months of runway, and funding-needed signal.

Cash position

live
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Runway

How to use this calculator

  1. Enter cash on hand — bank balance plus short-term receivables.
  2. Enter monthly gross burn — every dollar leaving the bank, including payroll, ads, tools, and overhead.
  3. Enter monthly revenue received in cash this month.
  4. Pick a target runway to see how much fundraising would extend you to that horizon.

Calculation method

Net Burn = Gross Burn - Revenue

Runway = Cash / Net Burn

Funding Needed = (Target - Runway) x Net Burn

Runway assumes burn and revenue stay flat. In practice, both compound — revenue typically grows, but so do salaries. Re-run monthly with updated actuals.

Frequently Asked Questions

Gross burn is your total monthly spend (every dollar that leaves the bank). Net burn subtracts monthly revenue: Net = Gross - Revenue. Runway is calculated on net burn because revenue offsets cash consumption.
Most VCs recommend 18-24 months of runway after a round closes. Below 12 months and you are in active fundraising mode (high distraction tax). Below 6 months and you are at risk; emergency cuts may be needed.
Begin investor conversations when you have 9-12 months of runway. Fundraising takes 3-6 months from first meeting to wire. Starting earlier preserves leverage; starting later forces you to accept worse terms.
In order of impact: (1) Pause low-conviction hires, (2) Reduce paid acquisition until CAC payback improves, (3) Renegotiate or cancel underused SaaS tools, (4) Cut perks and non-essential travel. People are 60-80% of SaaS cost, so freezing headcount is the largest lever.
Paul Graham's framing: a startup is default alive if, on its current trajectory (current growth and spend), it will reach profitability before running out of money. Default dead means runway will end first. Plotting projected MRR vs projected burn over time tells you which you are.

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MRR / ARR Projection Calculator

Project MRR/ARR over 6-36 months with growth + churn assumptions.

Business & SaaS Disclaimer

Runway is a snapshot under static assumptions. Real cash flow is lumpy — payroll cycles, prepaid annual contracts, and unexpected expenses all shift the date. SaaSCalcHub is not business or financial advice. Consult business advisors, CPAs, and consultants for your specific situation.

Last updated: May 26, 2026