How to Calculate Startup Runway
Startup runway is the number of months your business can survive before running out of cash. This calculation is vital for timing your next fundraise or pivot. Early-stage SaaS startups typically burn between $30,000 and $150,000 per month depending on headcount and growth stage.
The Startup Burn Rate Formula
To calculate runway, you simply divide your total cash balance by your Net Monthly Burn Rate:
Net Burn = Total Monthly Expenses - Total Monthly Revenue
Runway = Total Cash / Net Burn
What is a "Safe" Runway in 2026?
In the current venture capital landscape, investors typically look for companies to have 18 to 24 months of runway after a funding round. If your runway falls below 6 months, it is generally considered the "danger zone."
- Gross Burn: Total cash leaving your bank account each month.
- Net Burn: Your actual monthly loss (Expenses minus Revenue).
- Default Alive: You are "Default Alive" if you will reach profitability before running out of cash.