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Startup Runway / Burn Rate Calculator

Compute runway (months until cash zeroes) from current balance and monthly burn rate. Classic startup indicator.

Cash runway: how long until bankruptcy?

Runway is the number of months a company can keep operating before running out of cash, given its current burn rate. The formula is Runway = Cash on hand / Monthly burn, where burn = monthly expenses − monthly revenue. If burn is negative (revenue exceeds expenses), the company is Default Alive — a term coined by Paul Graham (Y Combinator, 2015) for startups that would survive without new funding. Example: R$ 500,000 in the bank with R$ 60,000 of net monthly burn yields ~8.3 months of runway. Healthy SaaS startups target 18–24 months of runway between funding rounds.

Applications

Standard slide in pitch decks (cash burn / runway), board reporting, headcount decisions (RIF — reduction in force), the call between fundraising and sustainable growth, and M&A timing. In Brazil, when runway runs out, Law 11.101/2005 governs judicial recovery (recuperação judicial) and bankruptcy (falência).

FAQ

Net burn vs gross burn? Gross burn is total monthly outflow; net burn subtracts revenue. Runway uses net burn.

What if revenue is growing? Static runway underestimates time. Project month-by-month with revenue growth and you'll get a longer real horizon.

What's a safe runway? Most VCs expect 18–24 months post-round. Below 6 months is critical — start fundraising or cutting costs immediately.

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