How many months can your business survive at the current burn rate? Know your runway and plan fundraising, cuts, or pivots before it’s too late.
Cash runway is how long your business can operate before running out of money. For startups, the rule of thumb is: always maintain at least 12–18 months of runway. Fundraising takes 3–6 months — start when you have 12 months left, not 3.
Paul Graham’s concept: if you keep growing at your current rate, will you reach profitability before running out of cash? This calculator shows that date.
Gross burn = total expenses. Net burn = expenses minus revenue. Reduce net burn by cutting costs OR growing revenue — both extend runway equally.
Raise when you don’t need to. Start conversations at 12–18 months runway. Desperate fundraising leads to bad terms and founder dilution.
Under 6 months runway without a clear path to revenue: cut immediately. Salary reductions, contractor work, pivoting to revenue-generating features.