#980 · Startup Tool

Investor Runway Calculator

Assess startup runway, net burn, and funding urgency from an investor perspective. Use it to evaluate whether a company has enough cash to reach the next financing milestone.

Calculator

Startup assumptions
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How to use this calculator

  • Enter current cash balance.
  • Add monthly operating expenses.
  • Enter current monthly revenue.
  • Include planned monthly hiring cost or new fixed costs.

What the result means

Runway shows how long the company can operate before cash runs out. Investors compare runway with the time needed to reach the next milestone.

Net burn = monthly expenses + planned hiring cost - monthly revenue. Runway = cash balance ÷ net burn.

This is a static runway estimate. If revenue growth or hiring changes materially, run multiple scenarios.

Example calculation

With $1.5M cash, $180,000 expenses, $70,000 revenue, and $20,000 planned hiring cost, net burn is $130,000 and runway is about 11.5 months.

Tips for better results

  • Fundraising risk rises when runway falls below 12 months.
  • Separate committed hiring from optional hiring.
  • Improve revenue quality before increasing burn.
  • Review whether milestones can be reached before cash exhaustion.

FAQ

How much runway should a startup have before raising funding?

Many startups try to start raising when they still have 9 to 12 months of runway.

What runway do investors consider healthy?

Investors often consider 18 to 24 months healthy, depending on burn efficiency and stage.

How does burn rate affect investment risk?

Higher burn shortens runway and can force fundraising before the company reaches valuation-improving milestones.

Should hiring plans be included in runway calculations?

Yes. Planned hiring cost should be included if those hires are likely to happen and create recurring expenses.

What happens if runway is under 12 months?

Under 12 months can create fundraising pressure, reduce negotiating power, and increase the need to cut burn or raise quickly.

Startup decision modules

ModuleWhat it shows
Runway SummaryNet burn and runway months.
Funding UrgencyHow soon the company may need capital.
Hiring ImpactEffect of planned hiring cost on cash life.
Investor RiskWhether runway supports the next milestone.

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