Burn Rate & Runway Calculator: How Long Will Cash Last?

Cash runway is the number of months before you run out of money at your current burn rate. For startups and growing SMBs, runway is the single most important number – more important than revenue, more important than user count, more important than ARR. This burn rate and runway calculator gives you the answer in seconds, plus the sensitivity analysis CFOs run before every board meeting.

Burn Rate & Runway Calculator

Cash on hand today ($)Total liquid cash + cash equivalents in your business bank accounts.

Monthly revenue ($)Recurring + one-time revenue you actually collected last month.

Monthly operating expenses ($)Total cash out – payroll, rent, software, ads, contractors.

Expected monthly revenue growth (%) – optionalRealistic month-over-month growth. Leave blank for flat scenario.

Your Runway Analysis

Net Monthly Burn

–

expenses – revenue

Runway (Flat)

–

months at current pace

Runway (With Growth)

–

months if revenue grows

Cash Zero Date

–

flat scenario

Sensitivity Analysis

Scenario	Net Burn	Runway

Runway under 12 months? You need a plan, not a calculator.Book a free consultation – we’ll model 3 scenarios (fundraise, cost cut, growth) and recommend which path fits your business.Book a free consultation

Burn Rate & Runway Formulas

Metric	Formula
Gross Burn	Total monthly cash out
Net Burn	Monthly expenses – Monthly revenue
Runway (flat)	Cash on hand / Net Burn
Burn Multiple (SaaS)	Net Burn / Net New ARR (under 1.0 = world class)
Default Alive vs Default Dead	Will current cash + projected growth get you cashflow positive before zero?

Runway Benchmarks for Startups & SMBs

Runway	Status	Recommended Action
18+ months	Healthy	Focus on growth, hire deliberately, optimize unit economics
12-18 months	Solid	Plan next funding round or path to profitability
9-12 months	Caution	Begin fundraising or material cost cuts
6-9 months	Urgent	Fundraising takes 3-6 months – start now
3-6 months	Critical	CFO-led emergency plan, aggressive cuts, bridge financing
Under 3 months	Distress	Cash conservation, hard conversations with lenders/investors

FAQ

What’s a healthy cash runway for a startup?

Most institutional investors want to see 18-24 months of runway at fundraise time. Operating below 12 months puts you in a weak negotiating position. Below 6 months you’re effectively distressed.

Should I include revenue when calculating runway?

Yes – this calculator uses net burn (expenses minus revenue) which is the metric that actually matters. Gross burn overstates threat for any business with material revenue.

How is burn multiple different from burn rate?

Burn rate is dollars per month. Burn multiple is efficiency: net burn / net new ARR. Under 1.0 is world-class. Above 3.0 is concerning. Use burn multiple for SaaS efficiency, runway for survival math.

How fast can I extend my runway?

Cost cuts hit immediately. Revenue growth takes 30-90 days. Most CFO-led runway extensions free up 20-40% within one quarter via SaaS audit, contractor consolidation, AR acceleration, AP timing, software renegotiation.

Does this work for profitable businesses?

Yes – if expenses are less than revenue, the calculator shows “cashflow positive”. For profitable businesses, you can stress-test what happens if revenue drops 25% or expenses rise 15%.

Burn Rate & Runway Calculator (Free)