Startup Runway Calculator
Calculate how many months of runway you have and when you should start fundraising.
Enter Your Numbers
Your current bank balance
Total monthly expenses (salaries, rent, tools, etc.)
Current monthly recurring revenue
Month-over-month revenue growth rate
Understanding Your Runway
What is Startup Runway?
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.
What is 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.
When Should You Start Fundraising?
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:
- The fundraising process itself
- Time to find the right investors
- Negotiation and closing
- Unexpected delays
Healthy Runway Benchmarks
| 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 |
Tips to Extend Your Runway
- Reduce burn rate: Cut non-essential expenses, renegotiate contracts
- Increase revenue: Focus on sales, improve pricing
- Defer payments: Negotiate extended payment terms with vendors
- Bridge financing: Consider convertible notes from existing investors
- Government grants: R&D tax credits, Innovate UK grants
Need Help Extending Your Runway?
Our Fractional CFO service helps startups optimise burn rate, build financial models, and prepare for fundraising.
Request a Strategy Call