Startup Runway Calculator
How many months before your startup runs out of cash? Enter your numbers below. Everything runs in your browser, nothing is stored.
What is startup runway?
Startup runway is the number of months a startup can continue operating before it runs out of cash. It is calculated by dividing the current cash balance by the net monthly burn rate (monthly expenses minus monthly revenue).
For example, if a startup has INR 50 lakhs in the bank and spends INR 4 lakhs per month with INR 1 lakh in revenue, its net burn rate is INR 3 lakhs and its runway is approximately 16.7 months.
How to calculate startup runway
Runway (months) = Cash Balance / (Monthly Expenses - Monthly Revenue)
If pre-revenue: Runway = Cash Balance / Monthly Expenses
- Check your total available cash in bank (include liquid FDs, exclude uncommitted pledges)
- Add up all monthly expenses: salaries, rent, cloud, software, marketing, legal, accounting
- Calculate average monthly revenue from the last 3 months (enter zero if pre-revenue)
- Divide cash by net burn to get your runway in months
How much runway should a startup have?
Most investors and advisors recommend maintaining 12 to 18 months of runway. In the Indian startup ecosystem, fundraising typically takes 3 to 6 months from first meeting to money in the bank. Founders should begin raising their next round when they have at least 6 to 9 months of runway remaining.
Under 3 months
Critical. Start fundraising immediately or cut costs drastically.
3 to 6 months
Warning. Begin active fundraising and investor outreach.
12+ months
Healthy. Focus on growth and product-market fit.
How to extend your runway
- Reduce monthly expenses and renegotiate vendor contracts
- Accelerate revenue by focusing on paying customers
- Raise a bridge round or convertible note
- Apply for government grants (Startup India SISFS, state-level startup schemes)
- Move to a lower-cost city or go remote-first
- Convert fixed costs to variable costs (e.g. freelancers instead of full-time hires)
- Defer non-essential expenses like office upgrades or conferences
What is burn rate?
Burn rate is the rate at which a startup spends its cash reserves each month. There are two types: gross burn rate (total monthly expenses) and net burn rate (monthly expenses minus monthly revenue). Net burn rate is used to calculate runway because it accounts for incoming revenue.
For example, if a startup spends INR 5 lakhs per month and earns INR 2 lakhs, the gross burn rate is INR 5 lakhs and the net burn rate is INR 3 lakhs.
When should a startup start fundraising?
A startup should begin fundraising when it has 6 to 9 months of runway remaining. In India, the fundraising process from first investor meeting to money in the bank typically takes 3 to 6 months for pre-seed and seed rounds. Starting too late puts founders in a weak negotiating position and may force unfavorable terms like excessive dilution or harsh liquidation preferences.