#924 · Startup Tool

Seed Stage Runway Calculator

Calculate how many months of runway your seed-stage startup has after revenue, expenses, and planned hiring. Use it to decide whether to cut burn, delay hiring, or start fundraising.

Calculator

Seed-stage inputs
$
$
$
$
Ad space

How to use this calculator

  • Enter current cash balance.
  • Enter monthly recurring revenue or dependable monthly revenue.
  • Enter monthly expenses and planned incremental hiring cost.

What the result means

Runway tells how long the company can operate before cash runs out. Seed companies generally need enough runway to hit the next milestone before fundraising.

Net Burn = Monthly Expenses + Planned Hiring Cost - Monthly Revenue. Runway Months = Cash Balance / Net Burn. Safety Buffer = Runway - 12.

This calculator assumes burn remains constant. Recalculate after hiring, pricing changes, or new funding.

Example calculation

If cash is $1,000,000, revenue is $30,000, expenses are $100,000, and planned hiring adds $10,000, net burn is $80,000 and runway is 12.5 months.

Tips for better results

  • Start fundraising before runway falls below 9 to 12 months.
  • Separate fixed and discretionary costs.
  • Tie hiring to revenue milestones.
  • Update runway after every monthly close.

FAQ

How many months of runway should a seed startup have?

Many seed startups aim for at least 12 to 18 months of runway so they can reach meaningful milestones before the next round.

When should seed founders start fundraising?

Founders often start preparing before runway drops below 12 months, because fundraising can take several months and market conditions can change.

How do investors evaluate runway?

Investors look at runway together with burn rate, growth, milestones, hiring plan, and whether the company can reach the next funding proof point.

Does increasing ARR extend runway?

Yes, recurring revenue reduces net burn when expenses stay controlled, which can extend runway and improve funding leverage.

Should I reduce burn before raising capital?

Reducing inefficient burn can improve negotiation leverage, but cutting too deeply may slow the milestones needed for fundraising.

Seed-stage decision table

MetricMeaning
RunwayMonths before cash reaches zero.
Net BurnMonthly cash consumption after revenue.
Safety BufferMonths above or below a 12-month target.
Funding WindowUrgency level for financing.

Browse more calculators

Category hubs