How much runway should a startup have?

Rule of thumb: always maintain 18–24 months of runway. 12 months is the danger zone — not enough time to fundraise if growth stalls. Start fundraising at 9–12 months of runway remaining, as a Series A can take 3–6 months to close.

Burn rate is the monthly net cash consumption. Gross burn = total monthly expenses. Net burn = gross burn − revenue. As MRR grows, net burn decreases until break-even where net burn = 0. Post break-even, the company is cash-flow positive.

What is default alive vs default dead?

A startup is "default alive" if, at current growth rates, it will become profitable before running out of money — without raising more funding. "Default dead" means it will run out of cash first. Paul Graham's framework for assessing startup survival.

How do I extend runway without raising?

Options: reduce burn (hiring freeze, renegotiate contracts), increase MRR growth (focus on retention and expansion), convert monthly customers to annual (improves cash position), or sell prepaid annual plans for immediate cash.

saas

Free SaaS Runway Calculator — Cash Runway & Break-Even Projection

Runway is the number of months a startup can operate before running out of cash, given the current burn rate and cash on hand. Break-even is the point where MRR equals monthly expenses. This calculator projects both, accounting for MRR growth reducing burn over time.

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How It Works

How to use SaaS Runway Calculator

Enter cash balance and monthly burn

Input current cash on hand and total monthly expenses (salaries, tools, hosting, etc.).

Enter MRR and growth rate

Add current MRR and expected monthly MRR growth rate percentage.

See runway and break-even

The calculator shows months of runway, break-even month, and a 24-month burn/revenue projection.

FAQ

Frequently asked questions

Runway = Cash balance / Net monthly burn. Net burn = monthly expenses − MRR. If you have $300K cash and burn $30K/month net, you have 10 months of runway. Gross burn (before revenue) is different from net burn.

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References

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Free SaaS Runway Calculator — Cash Runway & Break-Even Projection

How to use SaaS Runway Calculator

Frequently asked questions

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Further reading

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