Loading...
How many months do you have until you hit $0? Calculate your "Net Burn" and "Runway" based on your current cash, revenue, and expenses.
Step-by-step breakdown of the underlying equations.
✅ You have a healthy buffer. Focus on product-market fit and sustainable growth.
The SaaS Startup Runway Calculator determines how many months your company can operate before running out of cash. It calculates your net burn rate (expenses minus revenue) and divides your cash reserves by that number.
This is the most important number for any startup founder to know. It tells you exactly how much time you have to achieve profitability, raise additional funding, or make critical business decisions.
Scenario: A seed-stage SaaS startup has $100,000 in the bank, $5,000/month in MRR, and $15,000/month in expenses.
Note: This assumes constant burn and revenue. In reality, both change—factor in growth rate for a more accurate projection.
Gross burn is your total monthly expenses—everything you spend. Net burn is gross burn minus revenue (how much cash you lose each month). A company with $50K gross burn and $30K revenue has $20K net burn. Runway is calculated using net burn, which accounts for incoming cash.
Standard advice: maintain 12-18 months of runway minimum. Less than 6 months is a crisis—you should be fundraising or cutting costs immediately. More than 24 months may mean you've raised too much and diluted unnecessarily. The right amount depends on fundraising environment and growth stage.
Terms coined by Paul Graham. 'Default alive' means if nothing changes, your revenue will exceed expenses before cash runs out—you'll survive. 'Default dead' means you'll run out of money first. This calculator shows if your net burn is negative (revenue > expenses), you're default alive.
Start fundraising 6-9 months before you need the money. Fundraising typically takes 3-6 months for seed/Series A. This means with 12 months of runway, you should already be preparing materials and talking to investors.
Options include: (1) Cut non-essential expenses (office space, premium tools, team size). (2) Increase revenue through pricing changes or sales focus. (3) Negotiate payment terms with vendors. (4) Consider revenue-based financing or venture debt. (5) Pursue strategic partnerships or grants.