Runway Calculator
Runway = Cash ÷ Monthly Burn. Simple formula, but the inputs require honesty.
Calculate Your Burn
Monthly expenses: payroll, rent, software, contractors, taxes, everything. Don't forget quarterly or annual expenses—divide by 12 and include them.
Conservative vs Optimistic
Conservative: Assume no new revenue. How long can you survive on what you have?
Optimistic: Include expected revenue. But discount it—not all deals close, not all clients pay on time.
Decision Points
6+ months: Comfortable. 3-6 months: Concerning, start cost-cutting. Under 3 months: Crisis mode.
Extending Runway
Cut expenses (fastest). Accelerate collections (invoice faster, shorter terms). Line of credit (buy time). Revenue push (risky if desperate).