Quick Answer

A startup with $500,000 in cash, $20,000 monthly revenue, and $60,000 monthly expenses has an estimated runway of approximately 12.5 months at the current burn rate.

Cash on Hand ($)

Monthly Recurring Revenue ($)

Monthly Expenses ($)

Results

Visual Breakdown

Common Examples

Input	Result
$500,000 cash, $20,000 revenue, $60,000 expenses	Estimated 12.5 months runway
$1,000,000 cash, $50,000 revenue, $100,000 expenses	Estimated 20 months runway
$250,000 cash, $0 revenue, $30,000 expenses	Estimated 8.3 months runway
$2,000,000 cash, $80,000 revenue, $120,000 expenses	Estimated 50 months runway

How It Works

This calculator uses the net burn rate formula:

Monthly Net Burn = Monthly Expenses − Monthly Revenue

Runway (months) = Cash Balance / Monthly Net Burn

Where:

• Net Burn = how much cash you lose per month after revenue
• Runway = estimated months until cash runs out at current burn rate

If monthly revenue exceeds monthly expenses, the company is cash-flow positive and runway is effectively infinite (assuming conditions hold).

Worked Example

A SaaS startup has $500,000 in the bank, $20,000 in monthly recurring revenue, and $60,000 in monthly expenses. Net monthly burn = $60,000 - $20,000 = $40,000. Runway = $500,000 / $40,000 = 12.5 months. At this rate, the company would need to either increase revenue, cut expenses, or raise additional funding within roughly a year.

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Frequently Asked Questions

What is burn rate?

Burn rate is the rate at which a company spends its cash reserves. Gross burn is total monthly expenses. Net burn subtracts revenue from expenses, representing the actual cash decrease per month. This calculator uses net burn.

What is a healthy runway?

Most startup advisors suggest maintaining at least 12 to 18 months of runway. Less than 6 months is generally considered urgent, meaning you need to either raise capital, cut costs, or increase revenue quickly.

Does this account for revenue growth?

No. This provides a snapshot based on current figures. If your revenue is growing, actual runway may be longer. For growth-adjusted projections, you would need to model monthly revenue increases separately.