Startup Runway & Burn Rate Calculator – Cash Zero Date Projection

Calculate startup cash runway, gross burn, net burn rate and forecast your zero-cash date. Simulate revenue growth and cost reduction scenarios. 100% private.

Current Cash in Bank

Monthly Gross Expenses (Gross Burn)

Current Monthly Revenue

Monthly Revenue Growth Rate (%)

Projected Monthly Expense Growth (%)

Currency

Forecasted Cash Runway

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Runway Health Status–

Current Monthly Net Burn Rate–

Forecasted Zero-Cash Date–

Static (Linear) Runway–

Breakeven / Default Alive Status–

Total Projected Revenue in Runway–

Financial and commercial tariff estimate only, not certified customs or tax advice.

Understanding Startup Cash Runway and Net Burn Rate

Runway measures the number of months a startup or independent business can continue operating before running completely out of money, assuming current revenue and expense trajectories. Monitoring your runway is the single most vital survival discipline for bootstrapped founders and venture-backed startups alike.

Gross Burn vs Net Burn Rate

Gross Burn Rate: The absolute total amount of cash spent each month (salaries, contractor fees, cloud hosting, office rent, software tools, marketing ads).
Net Burn Rate: The actual monthly cash deficit: Net Burn = Gross Expenses - Monthly Revenue. If you spend $30,000 and earn $10,000, your net burn is $20,000.
Static vs Growth-Adjusted Runway: Dividing cash by current net burn produces a flat, linear estimate. However, compounding monthly revenue growth extends runway, while hiring and expanding expenses contract it. This calculator simulates a dynamic month-by-month cash trajectory.

The 4 Stages of Runway Health

< 6 Months (Red Alert): Immediate action required. Freeze non-essential hiring, initiate bridge financing or implement emergency cost reductions. Closing a venture funding round takes 3 to 6 months on average.
6 – 12 Months (Fundraising Window): The optimal timeframe to initiate investor conversations, prepare pitch decks, or focus on near-term cash-generative enterprise pilots.
12 – 18 Months (Healthy Execution): Adequate buffer to experiment, iterate on product-market fit, and hit core KPIs without imminent financial distraction.
Default Alive: When projected revenue growth outpaces expenses before cash reserves hit zero, your business becomes self-sustaining without requiring dilutive external capital.

Frequently asked questions

What does Paul Graham mean by 'Default Alive'?

A startup is 'Default Alive' if, assuming revenues continue growing at their current rate and expenses remain predictable, the company will reach profitability before its cash bank balance runs out.

How much runway should a seed-stage startup maintain?

The industry consensus recommendation is 18 to 24 months of runway following a funding round. This provides 12 to 15 months of uninterrupted product building, leaving a 6-month buffer to close the subsequent Series A round.

How can founders extend runway quickly?

1. Audit software subscriptions and eliminate redundant SaaS seats. 2. Transition fixed monthly agency retainers to milestone-based contractors. 3. Renegotiate annual cloud infrastructure commitments. 4. Incentivize customers to pay upfront with discounted annual billing.