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Free tool

Burn Rate & Runway Calculator

Calculate your monthly net burn and how many months of runway you have left at the current pace — the number every founder and investor watches.

Burn & runway

Enter your cash on hand and monthly cash in/out.

Estimate only, not tax or legal advice.
Enter numbers to calculate

Runway is the number every founder and investor watches. The calculator above gives it instantly; here is how to read it and act on it.

Gross vs net burn

  • Gross burn is your total monthly spend, regardless of income.
  • Net burn is spend minus revenue — the real monthly drain on your bank balance.
  • Runway = cash ÷ net burn. It tells you how many months you can operate before you need more cash.

If you bring in more than you spend, you are cash-flow positive and runway is effectively unlimited at the current pace.

What a healthy runway looks like

Most founders and investors get uncomfortable when runway drops below six months, because raising or cutting takes time you may not have.

A common target is 12–18 months after a raise: long enough to hit the milestones that justify the next round, with a buffer for slippage.

Extending runway: raise vs cut

When runway gets short you have two levers, and most founders use a mix:

  • Increase cash in — raise capital, accelerate sales, collect receivables faster.
  • Decrease cash out — cut non-essential spend, renegotiate large contracts.
  • A fractional CFO can model both paths against your real numbers before you commit.
Key takeaway: Track net burn and runway like a live dashboard metric, and start acting — raising or cutting — well before you hit six months.

Related tools & guides

Keep going: Virtual CFO services · Cash-flow forecasting guide · KPIs every founder should track.

FAQ

Frequently asked questions

What is the difference between gross and net burn?

Gross burn is your total monthly spend regardless of income. Net burn is spend minus revenue — the real monthly drain on your bank balance. Runway is based on net burn.

How many months of runway should a startup have?

Most founders and investors aim for 12–18 months after a raise and start to act when runway falls below six months, since raising or cutting takes time.

How do I extend my runway?

Increase cash in (raise capital, accelerate sales, collect receivables) or reduce cash out (cut non-essential spend, renegotiate contracts) — usually a combination of both.

Does being cash-flow positive mean unlimited runway?

Effectively yes, at your current pace: if you bring in more than you spend, your cash is not declining, so the focus shifts from survival to growth.

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