Startup Runway and Burn Rate Calculator
Gross burn is what you spend each month. Net burn is what you spend minus what you earn. Runway is how long the cash lasts at that rate.
What is runway?
Runway is the number of months a company can keep operating before its cash runs out. Investors and founders watch it closely, because raising money or cutting costs takes months, so you need to know the date long before it arrives. This calculator turns your bank balance, monthly expenses and revenue into a runway figure and a cash-out date.
Formulas
Gross burn = monthly expenses. Net burn = monthly expenses − monthly revenue. Runway (months) = cash ÷ net burn.
If you add monthly growth rates, the tool steps through each month, adds the revenue and subtracts the expenses at that month's level, and counts the months until the cash would go below zero.
Worked example
You have ₹50,00,000 in the bank and spend ₹9,00,000 a month, with ₹4,00,000 of monthly revenue. Net burn is ₹5,00,000, so the runway is 50,00,000 ÷ 5,00,000 = 10 months.
Cutting expenses to ₹8,00,000 reduces net burn to ₹4,00,000 and stretches the runway to 12.5 months. Growing revenue also extends it, which is why the growth boxes are there.
Frequently asked questions
How much runway is enough?
Many founders aim for at least 12 to 18 months, because fundraising often takes six months or more. Under six months is usually urgent.
What is the difference between gross and net burn?
Gross burn is total monthly spending. Net burn subtracts revenue, so it shows how fast your cash balance really falls.
What if revenue is growing?
Enter the monthly growth rate. If revenue grows fast enough to meet expenses, the cash may never run out, and the tool says so. Be realistic, because growth rarely stays constant.
Does this include one-off costs or taxes?
Only if you add them to monthly expenses. Spread large one-off payments, such as annual software or advance tax, across the months.
Is my data uploaded?
No. Everything runs in your browser.
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Results are estimates for information only and are not financial, tax or legal advice.