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 β monthly revenue. If burn is negative (revenue exceeds expenses), the company is Default Alive β 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 18β24 months of runway between funding rounds.
Applications
Standard slide in pitch decks (cash burn / runway), board reporting, headcount decisions (RIF β 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 (falΓͺncia).
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 18β24 months post-round. Below 6 months is critical β start fundraising or cutting costs immediately.
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The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.