#346 · Startup Tool

Runway Calculator

Calculate startup runway in months from cash balance, revenue, expenses, and planned monthly changes.

Your numbers

Runway
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Runway below 12 months is risky. Runway above 18 months is generally more stable for planning.
Runway benchmark: less than 12 months is risky for most startups; 18+ months is generally more stable if growth assumptions are realistic.

How this calculator works

This runway calculator is designed for SaaS, subscription, and recurring-revenue businesses. Enter your current operating numbers to get a fast directional result.

Runway = cash balance ÷ monthly net burn
Keep the reporting period consistent. Monthly metrics should use monthly revenue, monthly churn, and monthly acquisition counts.

How to use it

  • Use clean finance or analytics data from the same period.
  • Exclude one-time revenue when calculating recurring revenue metrics.
  • Compare the result against prior months to see trend direction, not just one snapshot.

Result interpretation

Runway below 12 months is often a warning zone. Eighteen months or more is usually more comfortable because fundraising, hiring, and revenue plans rarely move perfectly on schedule.

Runway risk benchmark

Out of cash estimate: use runway months to estimate the out-of-cash date. Under 12 months is risky, 12–18 months is a planning window, and 18+ months is generally more comfortable.

FAQ

What is startup runway?

Runway is how many months a company can operate before cash reaches zero.

Why include growth rates?

Revenue and expenses often change monthly, so growth assumptions can materially change runway.

How should I use this result?

Use it as a quick operating metric, then compare it with cohort trends, cash flow, pricing changes, and acquisition channel quality.

Is this calculator exact accounting?

No. It is a planning calculator. Use consistent definitions from your finance reports when making board or investor decisions.