How many months until your startup runs out of cash?
Your burn rate will tell you the number of months between right now and "we can't make payroll." It's a countdown. The founders who survive are the ones who know exactly how much time they have and make every month count. Use our free runway calculator below to find out how to manage your cash on hand today.
Runway Over Time
Net Monthly Burn
Expenses by Category
What These Numbers Tell You
Burn Rate
How fast you're spendingBurn rate is how fast you're spending cash each month. There are two versions:
- Gross burn = total monthly expenses (everything going out the door)
- Net burn = expenses minus revenue (your actual cash loss)
If you're pre-revenue, they're the same. If you're making money, net burn is what matters for runway.
Runway
Time until cash runs outRunway is how many months you can survive at your current burn rate.
- A startup with $500K in the bank burning $50K/month has 10 months of runway. Simple math, existential implications.
What "Good" Burn Rate Looks Like
The metric investors actually care about: Burn multiple (Net Burn ÷ Net New ARR). It shows how efficiently you're turning spending into revenue.
Below 1x
ExcellentAI-native companies are hitting this
1-1.5x
GreatThe new target for Series A
1.5-2x
AcceptableFine for now, optimize soon
Above 2x
TroubleYou'll struggle to raise
The bar has shifted.Midjourney generates $200M annually with 11 employees. That's the efficiency standard investors now measure you against.
Warning Signs You're Burning Too Fast
Watch for these red flags that indicate your burn rate may be unsustainable.
Burn multiple above 2x
Spending $2+ for every $1 of new revenue
Runway under 12 months
Without active fundraising in progress
Gross burn growing faster than revenue
Your expenses are outpacing your growth
High customer concentration
If one customer churns, you're in trouble
Stop Burning Cash on Payroll Compliance
Multi-state payroll is a hidden money pit for distributed startups. Tax registrations, filings, compliance updates across every state where you have employees. It adds up fast and pulls founders away from the work that actually matters.
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Questions?
Most seed-stage startups burn $50K-$100K monthly, with a median around $75K. But "healthy" depends on your runway—aim for 24-30 months of cash given the extended fundraising timelines in 2025-2026.
Divide your current cash balance by your monthly net burn rate. $500K in the bank with $50K net burn = 10 months of runway.
Gross burn is total monthly spending. Net burn subtracts your revenue. If you spend $100K and make $30K, gross burn is $100K and net burn is $70K.
Begin raising with 9-12 months of runway remaining. Never let runway drop below 6 months during an active raise. With the median time between rounds now at nearly 700 days, start earlier than you think.
Burn multiple = Net Burn ÷ Net New ARR. It shows how efficiently you're converting spending into revenue. In 2026, below 1.5x is the new target for Series A; above 2x will make fundraising difficult.
Can't find your answer here? Get in touch.
This calculator is for informational purposes only. Consult with a financial advisor for guidance specific to your situation.
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