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Funding Requirement Calculator

Work out funding requirement instantly with clear inputs, formula shown and shareable results.

About Funding Requirement Calculator

Size a round from the runway you need to reach the next milestone, not from what investors might offer. Multiply net monthly burn by the target months, add committed capital spend, then add a contingency — plans slip, and running out of cash while fundraising destroys valuation.

Formulas

Funding required

Funding = (Monthly net burn x Months + Capex) x (1 + Contingency %)

Implied runway

Runway = Funding / Monthly net burn

Worked example

With the default values below, Funding Requirement Calculator returns Funding to raise of $3,432,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly net burn
145,000
Runway to fund
18
One-off capital spend in the period
250,000
Contingency buffer
20

Results

Funding to raise
$3,432,000.00
Operating burn over the period
$2,610,000.00
Contingency buffer
$572,000.00
Runway the raise buys at current burn
23.7

Step by step

  1. 1Values used
  2. 2Funding required
  3. 3Implied runway
  4. 4Funding to raise= 3,432,000.00
  5. 5Operating burn over the period= 2,610,000.00
  6. 6Contingency buffer= 572,000.00
  7. 7Runway the raise buys at current burn= 23.7

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How much runway should a round buy?

18-24 months is the common target: enough to hit milestones and still have six months of cushion to run the next process.

Should I use gross or net burn?

Net burn, after revenue receipts. Gross burn overstates the requirement for any company with meaningful revenue.

Related Calculators

Funding Requirement Calculator – Calculate Funding to raise