Startup runway calculator
Runway is a moving target when revenue changes. This calculator subtracts monthly net burn from cash and grows revenue by the rate you enter, so the result is more useful than cash divided by expenses alone.
Inputs and method
- Cash balance: liquid cash available at the start of the projection.
- Monthly expenses: the current operating outflow before revenue.
- Current monthly revenue and expected month-over-month growth.
- Each month, cash decreases by expenses minus revenue; next month's revenue is multiplied by (1 + growth). The projection stops at profitability or 120 months.
Worked example
If cash is $120,000, expenses are $20,000 per month, revenue is $5,000, and growth is 0%, net burn stays at $15,000 and the calculator reaches zero cash after 8 months. Raising growth or reducing expenses changes both the monthly burn and the zero-cash date.
Caveats and next decision
The projection assumes a smooth growth rate and constant expenses; it does not model fundraising, taxes, working capital, seasonality, delayed collections, or one-time costs. Treat a long or profitable result as a scenario, not a promise, and stress-test a slower-growth case before making a hiring commitment.
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