Calculate how many months of runway you have and when you should start fundraising.
Your current bank balance
Total monthly expenses (salaries, rent, tools, etc.)
Current monthly recurring revenue
Month-over-month revenue growth rate
Runway is the number of months your startup can operate before running out of cash, assuming no additional funding or revenue changes. It's calculated by dividing your current cash position by your monthly burn rate.
Gross burn is your total monthly expenses. Net burn is your monthly expenses minus monthly revenue. For early-stage startups with minimal revenue, these are often the same.
The general rule is to start fundraising when you have 9-12 months of runway remaining. Fundraising typically takes 3-6 months, so this gives you buffer for:
| Runway | Status | Action |
|---|---|---|
| 18+ months | Healthy | Focus on growth and milestones |
| 12-18 months | Good | Start thinking about fundraising strategy |
| 9-12 months | Caution | Begin active fundraising now |
| 6-9 months | Warning | Urgent: fundraise or cut costs |
| <6 months | Critical | Emergency mode: bridge or pivot |
Our fractional CFO services help startups optimize burn rate, build financial models, and prepare for fundraising.
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