#938 · Startup Tool

Pre Seed Runway Calculator

Estimate how many months your pre-seed startup can operate before cash becomes critical. The calculator accounts for cash balance, gross burn, revenue, and a safety reserve.

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How to use this calculator

Enter current cash, monthly gross burn, monthly revenue, and the cash reserve you do not want to spend.

The calculator estimates net burn, usable cash, runway months, and when fundraising should begin.

What the result means

Runway shows how long the company can operate before needing more capital or major cost changes. A longer runway gives more time to reach meaningful milestones.

Net Burn = Monthly Gross Burn − Monthly Revenue; Usable Cash = Cash Balance − Safety Reserve; Runway = Usable Cash ÷ Net Burn.

Pre-seed startups should often aim for at least 12 months of runway, with 18 months or more providing a stronger safety margin.

Example calculation

With $750,000 cash, $90,000 gross burn, $18,000 revenue, and $50,000 reserve, net burn is $72,000 and runway is 9.7 months.

Tips for better results

  • Use net burn, not gross burn, for runway if revenue is recurring.
  • Start fundraising before cash drops below 6 months of runway.
  • Recalculate runway after every major hire or contract change.
  • Keep a separate reserve for unexpected delays.

FAQ

How do I calculate runway for a pre-seed startup?

Subtract monthly revenue from monthly gross burn to get net burn, then divide usable cash by net burn.

How many months of runway should a pre-seed startup have?

Many pre-seed startups should target at least 12 months of runway, while 18 months or more provides a stronger fundraising buffer.

When should I start fundraising if my startup has less than 12 months of runway?

Many founders begin fundraising when runway approaches 9 to 12 months so there is enough time for investor conversations and closing delays.

Should I include revenue when calculating startup runway?

Yes, if the revenue is recurring and reasonably reliable. Uncertain one-time revenue should be treated conservatively.

What happens if monthly revenue is higher than gross burn?

If revenue exceeds gross burn, net burn becomes zero or negative, meaning the company is at or near cash-flow break-even.

Startup metric table

MetricMeaning
Primary metricRunway Months
Decision useUse this result to judge startup health, investor readiness, and next operating priorities.
BenchmarkPre-seed startups should often aim for at least 12 months of runway, with 18 months or more providing a stronger safety margin.
RecommendationImprove the weakest driver before scaling spend or fundraising assumptions.

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