What is startup runway?
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How the math works
Runway (months) = Cash in Bank ÷ Net Burn · Net Burn = Monthly Expenses − Monthly Revenue
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Gross burn vs net burn
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What “default alive” means
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How much runway is enough?
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Frequently asked questions
How do you calculate startup runway?
Runway is cash in the bank divided by monthly net burn. Net burn is monthly expenses minus monthly revenue. For example, $240K in cash with a $30K monthly net burn gives you 8 months of runway.
What does default alive mean?
A startup is default alive when its revenue covers its expenses before the cash runs out. If your monthly revenue is equal to or higher than your monthly expenses, your runway is effectively infinite — you don't need to raise to survive.
Should I use gross burn or net burn for runway?
Use net burn. Gross burn is your total monthly spend; net burn subtracts revenue. Runway measures how long your cash lasts, and revenue coming in extends that — so net burn is the honest number.
How many months of runway should a startup have?
Most founders target 18–24 months after a round, because raising the next one can take 6–9 months. Under 12 months you should be actively fundraising. Under 6 months you are in defense mode: cut burn or close a bridge.
You know your runway. Now defend it.
Founder Runway is a startup simulation. Every decision moves your cash and your runway. Test the aggressive hiring plan, the early sales team, or the bridge round — before you pay for it with real money.
Play the simulation →More free calculators: all startup tools · burn rate calculator