The Cash Runway Calculator forecasts the exact number of months your startup can survive before running out of money, assuming current burn rate and revenue levels remain unchanged. It is the single most vital countdown metric for startup founders and executive boards.
Mathematical Formula
Cash Runway (Months) = Total Cash Reserves / Net Burn Rate
Runway Health Benchmarks
- 18+ Months: Comfortable runway. Allows teams to focus aggressively on product milestones without near-term fundraising pressure.
- 12 to 18 Months: Standard healthy state. Founders should begin soft-circling investors and updating pitch decks at the 12-month mark.
- Under 6 Months: Critical danger zone. Requires immediate cost-cutting, bridge financing, or emergency round closing.
How to Use
- Enter your current liquid bank cash balance.
- Enter your average net monthly cash burn.
- Review your estimated runway months and risk assessment indicator.
Frequently Asked Questions (FAQ)
When should a founder start raising the next round?
Given that institutional venture rounds typically take 4 to 6 months to close, founders should formally launch their process with 9 to 12 months of runway remaining.
How can a startup immediately extend its runway?
Cut discretionary marketing channels with negative payback, reduce software sprawl, transition from monthly to annual customer contracts, and freeze non-critical hiring.