Burn Scenarios
Austerity Mode
0 mo
--
Burn reduced 30%
Current Pace
0 mo
--
No changes
Growth Mode
0 mo
--
Revenue 2x growth
Runway Sensitivity -- Cash vs Net Burn
Runway (months) by cash balance and net monthly burn
Cash Runway -- All Scenarios
Runway Extension Options
| Action | Monthly Impact | New Net Burn | New Runway |
|---|
Cash Flow Waterfall (24 months)
How to Use This Calculator
1
Enter Cash Balance
Input your current cash on hand, including any recent funding or credit facilities.
2
Enter Monthly Financials
Input your monthly revenue, fixed costs, and variable costs to calculate your net burn rate.
3
Project Runway
See your remaining months of runway, zero-cash date, and scenario projections with different growth and cost assumptions.
Key Terms
- Runway
- The number of months a company can continue operating before running out of cash.
- Net Burn
- Monthly cash decrease after revenue — the rate at which the company depletes its reserves.
- Zero Cash Date
- The projected date when cash reserves are fully exhausted at the current burn rate.
- Bridge Financing
- Short-term funding to extend runway until the next major fundraising round.
- Cash Efficiency
- The ratio of new ARR generated per dollar of net burn — measures how well capital converts to growth.
Real-World Examples
Example 1
Seed-Stage Startup
Cash: $750,000, Monthly Costs: $65,000, Revenue: $8,000
Net burn: $57,000. Static runway: 13.2 months. At 15% MoM revenue growth: 18 months.
Example 2
Series A Company
Cash: $5,000,000, Monthly Costs: $320,000, Revenue: $185,000
Net burn: $135,000. Static runway: 37 months. Comfortable for 24-month plan.
Runway Scenarios at $2M Cash
| Monthly Burn | Revenue | Net Burn | Runway |
|---|
| $80,000 | $0 | $80,000 | 25 months |
| $120,000 | $30,000 | $90,000 | 22 months |
| $150,000 | $60,000 | $90,000 | 22 months |
| $200,000 | $120,000 | $80,000 | 25 months |
| $250,000 | $200,000 | $50,000 | 40 months |
Planning Your Startup's Financial Runway
How Much Runway Do You Need?
The standard advice is 18-24 months of runway post-funding. This gives 12-18 months to hit milestones and 6 months to fundraise for the next round. However, the right answer depends on your stage: pre-product startups need more runway (longer to prove value), while companies with strong revenue growth can operate with shorter runway because future revenue extends it naturally.
When to Cut vs. When to Raise
If runway drops below 12 months, you face a critical decision. Cutting costs extends runway but may slow growth. Raising a bridge round keeps you going but often at unfavorable terms. The best approach is to plan 18+ months ahead: know your fundraising triggers (metrics you need to hit), maintain investor relationships continuously, and always have a plan B for extending runway through cost reduction.