Runway Calculator
How many months of cash remain at the current burn — with the effect of revenue growth, and the burn that reaches a target runway.
Runway is cash divided by net burn.
How the runway calculator works
Runway is cash divided by net burn. With flat revenue that is the whole story; with growing revenue it is not, because burn shrinks each month and the runway is longer than the simple division suggests.
This iterates month by month with the growth applied, which is the difference between "nine months" and "we reach break-even in month eleven" — two very different conversations with a board.
Formula: runway = months until cash reaches zero, with revenue compounding
Worked examples
| Inputs | Runway (months) | Note |
|---|---|---|
| 850k, burning 85k, growing 8% | 600 | reaches break-even |
| No growth | 10 | 10 months flat |
| Higher costs | 5.89 | critical |
FAQFrequently asked questions
How much runway should I have?
Eighteen months is the usual advice, because raising takes six and you do not want to raise from a position of weakness.
Does growth really change the runway?
Substantially. At 8% monthly growth a ten-month flat runway can reach break-even instead of ending, which is a completely different situation.
What is the burn multiple?
Net burn divided by net new revenue. Under 1 is excellent, over 3 means you are buying growth expensively.
Should I cut costs or grow revenue?
Cutting is certain and immediate; growth is neither. When runway is under a year, cut first and grow second.
Does this account for a raise?
No — it is the runway on the cash you have. Add the expected raise to the cash figure to see the post-raise picture.
Where these figures come from
- Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
- US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardised
- Financial Reporting Council — the UK accounting and audit regulator
Last checked: September 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.