How to Calculate Startup Runway
What is Startup Runway?
Startup runway is the number of months a company can operate before running out of cash at its current burn rate. It is the most important survival metric for early-stage companies.
Formula
- Cash
- Current cash balance (Currency)
- Burn
- Monthly cash burn rate (Currency/month)
Step-by-Step Guide
- 1Runway = Cash balance / Monthly burn rate
- 2Net burn = Gross burn - Monthly recurring revenue
- 3Always model worst, base, and best case scenarios
Worked Examples
Frequently Asked Questions
What is Startup Runway Calc?
Startup runway is the number of months a company can operate before running out of cash at its current burn rate. It is the most important survival metric for early-stage companies
How accurate is the Startup Runway Calc calculator?
The calculator uses the standard published formula for startup runway calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Startup Runway Calc calculator use?
This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Startup Runway Calc calculator use?
The core formula is: Runway = Cash balance / Monthly burn rate. Each step in the calculation is shown so you can verify the result manually.
Ready to calculate? Try the free Startup Runway Calculator
Try it yourself →