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ResourcesBurn Rate & Runway Calculator
See exactly how long your cash will last, simulate different scenarios, and plan your next move with confidence. Use this startup burn rate calculator to estimate your runway and understand how long your business can operate before running out of cash. Enter your current cash balance and monthly burn to estimate your runway, then explore how changes in revenue, costs, or funding can extend it.
Enter your numbers
Total money currently in bank
How much you earn per month
Total spend per month
Expected growth in revenue per month
Your Financial Health
Runway (Current)
6 monthsRunway (With Growth)
5 monthsNet Burn / Month
$12500 Net burnTime to Breakeven
10 monthsCash Runway Projection
What is Burn Rate and Runway?
Burn rate measures how much cash your business spends each month, while runway tells you how long your current cash will last. Together, these metrics help you understand financial sustainability and plan ahead with confidence.
Burn rate includes all operating expenses such as salaries, tools, rent, and marketing. Runway is calculated by dividing your available cash by your monthly burn rate, giving you a clear timeline for how long you can continue operating.
What your runway means?
Less than 6 months → High risk. You likely need to cut costs or raise funding soon
6–12 months → Manageable, but requires planning
12+ months → Strong position with flexibility to invest in growth
Why runway matters for startups?
Helps you decide when to raise funding
Guides hiring and spending decisions
Signals financial health to investors
How to extend your runway?
Reduce non-essential expenses
Improve revenue or pricing
Delay hiring
Raise additional capital
Tip: Even small changes in burn can significantly increase your runway
Burn Rate vs Runway
| Feature | Burn Rate | Runway |
|---|---|---|
| What it measures | Monthly cash spent | Time before cash runs out |
| Unit | Currency per month | Months |
| Purpose | Tracks spending speed | Estimates survival time |
To understand when your business becomes sustainable, use the Break-Even Calculator.
Benchmarks
| Metric | Healthy Range |
|---|---|
| Runway | 12–18 months |
| Burn growth | Controlled |
| Cash planning | 6+ months visibility |
Example Scenario
Cash:
$500,000Revenue:
$20,000Expenses:
$70,000Net burn:
$50,000Runway:
10 monthsWho Should Use This Calculator?
Founders and operators use it to plan hiring and spending.
Finance teams use it for forecasting and cash planning.
Early-stage businesses rely on it to understand survival timelines.
Investors use it to assess financial discipline and risk.
Frequently Asked Questions
What is burn rate?
+Burn rate is the amount of money you spend each month to run your business. It includes all operating costs such as salaries, tools, rent, and marketing expenses. Monitoring burn rate helps you understand how quickly you are using your available cash.
What is cash runway?
+Cash runway refers to the number of months your business can continue operating before running out of money, based on your current burn rate. It gives you a clear timeline for when action may be needed.
How do I calculate burn rate and runway?
+Burn rate is calculated as your total monthly expenses minus revenue. Runway is calculated by dividing your total cash balance by your monthly burn rate. This tool automates both calculations for accuracy.
What is considered a healthy runway?
+A runway of 12 to 18 months is generally considered safe, as it gives enough time to grow revenue or secure funding
How can I extend my runway?
+You can extend runway by reducing costs, increasing revenue, improving margins, or delaying non-essential spending. Even small changes can significantly increase runway.
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