Runway and Burn Rate Calculator

Runway is one number: how many months until the account hits zero. This finds that number, and shows you what actually moves it.

Profitability is about running lean. Runway is about time — whether you have enough of it to reach the next thing that matters, like a funding round or the month you finally cover your own costs. Run out of road before you get there and none of it happens, no matter how good the plan was.

What You'll Need — five inputs:

• Monthly Revenue: total income coming into the business each month.

• Monthly Fixed Costs: the expenses that stay the same regardless of how much you sell.

• Variable Cost (%): the cost that scales with sales — materials, commissions, delivery.

• Cash on Hand: total liquid capital available right now.

• Runway Goal: the number of months you want the business to survive without new outside capital.

Your Results

• Monthly Net Burn / (Profit): whether you're consuming cash each month or adding to reserves.

• Net Runway (Months): the exact number of months before your cash hits zero at the current rate.

• Required Capital: the specific dollar amount you need to secure, through revenue or investment, to safely reach your Runway Goal.

Worth Knowing

More runway doesn't always mean raising more. Cutting fixed costs a little goes further than people expect. Trim a few thousand a month and you can buy yourself an extra quarter without giving up a single point of equity.