Work out net monthly cash burn and how many months of runway the current balance supports.
Gross burn is what you spend; net burn is what actually leaves the bank once revenue is collected. Runway divides the balance by net burn, and it is the number that determines how much time a plan really has. Investors size a round against runway, and the convention is to start raising with twelve months left because the process itself consumes six.
Burn Rate
Net burn = cash out − cash in; runway = cash ÷ net burn
Net burn = cash out − cash in; runway = cash ÷ net burn Gross burn is what you spend; net burn is what actually leaves the bank once revenue is collected. Runway divides the balance by net burn, and it is the number that determines how much time a plan really has.
Investors size a round against runway, and the convention is to start raising with twelve months left because the process itself consumes six.
This calculator takes 3 inputs: Cash in the bank, Monthly cash out, Monthly cash in. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.