Startup Runway & Burn Rate Calculator

Burn rate is how fast your startup spends cash. It's usually quoted as a monthly figure and is the single most important number for an unprofitable company, because it determines how long you can operate before you need more money.

Gross burn

Your total monthly cash outgoings — salaries, rent, software, marketing, everything — before counting any revenue.

Net burn

Gross burn minus monthly revenue. It's the cash that actually leaves the business each month, and it's what drives your runway.

Runway is how long your startup can keep operating at its current net burn before the cash runs out. It's measured in months: cash in bank divided by net monthly burn. A higher burn shortens your runway; revenue and cost cuts extend it.

If your revenue covers your burn, you're “default alive” — your runway is effectively unlimited and you control your own timeline rather than the next raise.

First find your net burn, then divide your cash by it:

Net burn = Monthly expenses − Monthly revenue

Runway (months) = Cash in bank ÷ Net burn

There's no universal number — it depends on your stage and how close you are to profitability. A common rule of thumb is to keep at least 12 months of runway at all times, and many investors prefer to see 18–24 months after a funding round so the team can hit its next set of milestones without immediately fundraising again.

Because raising typically takes three to six months, treat the point where you have roughly six months left as your signal to start the next raise — not the point where you're nearly out of cash and negotiating from weakness.

Every extra month of runway is optionality. Five practical ways to buy more time:

1. Cut non-essential spend — unused software seats, premature hires, and discretionary marketing are the usual culprits.
2. Negotiate longer payment terms with suppliers and vendors to ease monthly cash outflow.
3. Grow revenue from existing customers — upsells and renewals are cheaper than new acquisition.
4. Hire with discipline — payroll is most startups' largest line; delaying a hire by a quarter can add months.
5. Win non-dilutive funding — government grants and subsidies add cash to your runway without giving up any equity.

That last one is where we can help: a single startup grant can add months of runway with zero dilution. Use the calculator's result, then see which live grants you qualify for.

• Overestimating future revenue, which makes the runway look longer than it is.
• Ignoring small recurring costs that quietly compound into a meaningful monthly burn.
• Forgetting one-off costs — annual renewals, taxes, equipment — that don't show up in a typical month.
• Waiting too long to act, then cutting costs or raising under pressure instead of from a position of strength.