When should I start fundraising?

Most VCs suggest starting when you have 12-18 months of runway left. Fundraising typically takes 6+ months from first pitch to wire transfer. Starting earlier reduces pressure and gives you leverage to negotiate better terms. Never wait until youre desperate.

Should I include revenue in my runway calculation?

If you have consistent, predictable revenue, use NET burn rate (expenses minus revenue). If revenue is unpredictable or youre pre-revenue, use GROSS burn rate (expenses only) for a conservative estimate. Better to overestimate burn and underestimate revenue.

My runway is under 6 months. What should I do?

Take immediate action: (1) Cut costs aggressively to extend runway, (2) Explore bridge financing or convertible notes, (3) Accelerate revenue if possible, (4) Consider strategic pivots to profitability. Communicate honestly with investors and team. Facing reality early gives you more options than denial.

Startup Runway Calculator - Calculate Cash Runway

Calculate how long your startup cash will last based on burn rate. Plan cost-cutting scenarios to extend runway. Free startup runway calculator.

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Calculator

Current Cash BalanceTotal cash in bank

$0$100000000

Monthly Burn RateMonthly cash spent (expenses - revenue)

$0$10000000

Monthly Revenue (Optional)Predictable monthly revenue

$0$10000000

Potential Cost SavingsMonthly savings from cost-cutting

$0$1000000

Results

Current Runway (Months)

0.0

Runway (Days)

Cash Depletion (Months from Now)

0.0

Net Burn Rate (After Revenue)

$0.00

Extended Runway (With Cost Cuts)

0.0

Additional Months Gained

0.0

% of Cash Burned Per Month

0.00%

Runway Comparison

Current Runway$0.00

With Cost Cuts$0.00

Understanding Startup Runway

Runway is how many months you can operate before running out of cash. Its calculated as: Cash Balance ÷ Monthly Burn Rate. A runway of 12-18 months is healthy. Under 6 months is critical—take immediate action. Most fundraises take 6+ months, so start fundraising when you have 12-18 months left.

Runway Status Guide

18+ months (Green): Healthy - Focus on growth. 12-18 months (Yellow): Start planning next raise. 6-12 months (Orange): Begin active fundraising now. Under 6 months (Red): Critical - Cut costs immediately and explore bridge financing.

Extending Runway

Small cost cuts compound significantly. Reducing burn by 20% can add months of runway. Common levers: reduce headcount/contractors, cut marketing spend, renegotiate vendor contracts, delay hires, switch to cheaper tools. Every dollar saved extends survival time and reduces fundraising pressure.

Sources & References

Y Combinator - Startup Finance

https://www.ycombinator.com/library/4D-a-guide-to-seed-fundraising

TechCrunch - Burn Rate and Runway

https://techcrunch.com/tag/burn-rate/

Key Financial Terms

Understand the essential concepts behind this calculator

Cash Flow

The net amount of money moving in and out of your accounts

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View all financial terms in our glossary →

Frequently Asked Questions

Common questions about the Startup Runway Calculator - Calculate Cash Runway

Pre-revenue startups should aim for 12-18 months. Post-revenue companies should target 18-24 months. In 2025, many investors recommend raising enough for 24-36 months as a safety net, since fundraising takes longer than before. Never let runway drop below 6 months without taking action.

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⚠️ Important Disclaimer

This Startup Runway Calculator - Calculate Cash Runway provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.

The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.

This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:

Certified Financial Planner (CFP)
Certified Public Accountant (CPA) for tax matters
Licensed attorney for legal matters
Registered Investment Advisor (RIA) for investment decisions

Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.

No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.