Runway Calculator: Startup Burn Rate & Cash Runway
The runway calculator tells you exactly how long your cash will last: enter monthly burn, the cash in your bank account and any monthly revenue, and it returns months of runway, the date the money runs out and a warning state. For GCC founders planning a pre-seed round, runway is the number every investor checks first, because it is the honest measure of how long you can build before you must raise again.
The tool is deliberately minimal: three inputs, real maths, no sign-up. Runway is cash divided by net burn, net burn being total monthly spend minus monthly revenue, and the burn-down bar shows your position against the 24-month scale pre-seed investors expect.
How the runway calculator works
The calculator applies the standard cash runway formula. Net burn is monthly spend minus monthly revenue, because that is the rate at which the bank balance actually falls. Runway in months is cash divided by net burn, and the cash-out date is simply today plus that runway. If revenue meets or exceeds burn, net burn is zero or negative and the tool reports that the company is no longer burning cash. The bar compares your months to a 24-month target, and the full maths behind the 18-24 month rule is in our startup runway maths guide.
Runway calculator
What your runway calculator results mean
Read the output as three checkpoints. Under six months is critical: start the next raise this quarter and cut discretionary spend this week. Six to twelve months gives you one focused quarter to convert early traction into a round, and investor conversations should begin now. Twelve to eighteen months is workable, with room to hire towards the milestone. Eighteen months or more is healthy, and the question becomes which milestone justifies the next round rather than whether you survive to it. Every answer leads to the same document: the numbers here belong in your pre-seed pitch deck, and our MVP cost guide frames what the burn buys before revenue arrives.
Runway calculator methodology and assumptions
The model assumes monthly spend and revenue stay flat, which is realistic for the next quarter but not for a year: hiring, churn and one-off costs move both lines, so recompute every month with real bank data. It excludes VAT, licence renewals and capital purchases unless you include them in burn. Benchmarks reflect GCC markets: Bahrain teams run the leanest base, while Dubai and Riyadh salaries carry a 25-40% employment uplift, which is why programmes such as Tamkeen and AWS Activate publish support that reduces early cash burn. The result is a planning aid, not financial advice, and a raise changes your cap table, so read the cap table guide before you negotiate.
Frequently asked questions
How many months of runway should a startup have?
Most investors expect 18-24 months of net burn after a raise. Below 12 months you are raising again before you have evidence of traction, which weakens your negotiating position. The runway calculator shows your current position so you can plan the next raise before the bank balance forces one.
What is net burn and why does it matter for runway?
Net burn is total monthly spending minus monthly revenue. Runway equals cash divided by net burn, so it is the number that tells you when the money actually runs out. Including revenue matters: ignoring it overstates how fast the company is spending and shortens the real planning window.
What does a runway calculator tell me?
It converts three inputs, monthly burn, cash in the bank and monthly revenue, into months of runway, a cash-out date and a warning state. That makes the fundraising decision concrete: how much to raise, and how long you have to build the traction the next round is bought on.
How accurate is a runway calculation?
The maths is exact given your inputs, but the inputs drift: hiring, churn and delayed invoices all move burn. Recalculate monthly with real bank and accounting data. Treat the result as a planning floor, and keep a buffer, because raising the next round takes three to six months.
Runway is a decision tool, not a curiosity. Recalculate monthly, keep three to six months of buffer for the next raise, and if the numbers look uncomfortable, act early: founders who raise with runway left negotiate from strength.