Startup Runway & Burn Rate Calculator
Runway is the number of months your startup can operate before running out of cash. Understanding your burn rate and runway is critical for timing your next fundraise and ensuring you never run out of money. This calculator helps you model both simple and growth-adjusted scenarios.
Enter your financials below to calculate burn rate, runway, and whether your startup is "default alive" or "default dead."
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Understanding Burn Rate, Runway & Default Alive
Burn rate is the rate at which your startup spends cash each month. Gross burn is your total monthly expenses regardless of revenue, while net burn is expenses minus revenue -- the actual cash you lose each month. Net burn is the number that matters for calculating runway.
Runway is how many months your startup can continue operating at its current net burn rate before running out of cash. If you have $1M in the bank and a net burn of $100K per month, you have 10 months of runway. Most investors and advisors recommend maintaining at least 12-18 months of runway at all times.
Default alive vs. default dead is a concept popularized by Paul Graham. A startup is "default alive" if it will reach profitability before running out of cash, assuming current growth rates and expenses hold steady. A startup that is "default dead" needs to either raise more money, cut expenses, or accelerate revenue growth to survive. Knowing which category you fall into is critical for strategic planning.
When to start fundraising: Fundraising typically takes 3-6 months for early-stage startups. This calculator flags the ideal time to begin your raise so you are never negotiating from a position of desperation. Starting fundraising with less than 6 months of runway dramatically weakens your leverage and often leads to unfavorable terms or down rounds.
Growth projections matter because startups rarely have flat revenue or expenses. By modeling monthly growth rates for both revenue and expenses, you get a more realistic view of your trajectory. A company with $50K in monthly revenue growing at 15% month-over-month will look very different in 12 months than one growing at 5%. The projection table helps you visualize exactly when you will hit profitability or run out of cash.