Cash Flow & Planning
Burn Rate & Runway
"Cash is oxygen." knowing exactly when your startup runs out of money is the most critical metric for survival.
Inputs
$
$
(Expenses - Revenue). If you are profitable, enter 0.
Runway
0months
Until
Status Analysis
CRITICAL. You have less than 6 months of cash. You need to raise capital or cut costs immediately.
Daily Burn Rate
$833 / day
Why Runway is King
Runway is the amount of time (measured in months) your startup can survive before it runs out of cash.
Rules of Thumb for Fundraising
- Raise 18-24 months of runway: This gives you 12-18 months to build and grow, and 6 months to raise the next round.
- Start raising with 6-9 months left: Fundraising takes longer than you think. Do not wait until you have 3 months of cash left.
Net Burn vs. Gross Burn
This calculator uses Net Burn (Cash Spent - Cash Collected). This is the actual amount your bank account decreases each month.
Gross Burn is your total monthly expenses, ignoring revenue. Investors look at both to see how efficient you are.