Startup Runway Calculator

Runway is the number of months your startup can operate before running out of cash, assuming your current rate of spending and revenue stays constant. It's calculated as: Cash on hand ÷ Net monthly burn. It's one of the most important metrics for any startup — most VCs and advisors want to see at least 12–18 months of runway before a fundraise.

Gross burn is your total monthly expenses — salaries, rent, software, marketing, everything. Net burn subtracts any revenue you're generating. If you spend S$50k/month and earn S$10k/month in revenue, your net burn is S$40k. Runway is calculated on net burn. As you grow revenue, your net burn falls and runway extends even without raising more capital.

Most experienced investors recommend starting a fundraise when you have 9–12 months of runway remaining, not 3. A fundraising process typically takes 3–6 months, and you want to be negotiating from a position of strength, not desperation. If you're raising a Series A or later, budget even more time — larger rounds take longer.

Burn multiple = Net burn ÷ Net new ARR added that month. A ratio below 1x is excellent (you're adding more ARR than you're burning). 1–1.5x is good. Above 2x starts to concern investors. Above 3x, most VCs want to see a clear path to improvement. As markets tightened from 2022, burn multiple became as important as growth rate.

The levers are: cut costs (reduce headcount, renegotiate vendor contracts, cut non-essential spend), grow revenue (increase prices, expand to more customers, reduce churn), or both. A 20% reduction in monthly burn can extend runway by 25% or more depending on your starting position. Model both scenarios before deciding.

Yes — if founders are drawing market-rate salaries, include them. If founders are deferring pay, exclude what's deferred but note it as a future obligation. Many investors look at fully-loaded burn (including founder comp at market rate) to understand the true cost structure of the business at scale.