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Glossary
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Runway

What is Runway?

Your runway is how long you’ll have until your business runs out of cash, typically in months. It’s computed by dividing your total cash balance by your current burn rate .

Note that this figure assumes that you don’t raise more money, and that your revenue and expenses stay stable. If you significantly decrease your expenses, your runway will improve. Similarly, if you lose significant revenue, your runway may also become unexpectedly shortened.

It’s important to keep a close eye on your burn rate and runway at all times.

Burn Rate Calculator: Calculate Your Burn Rate and Startup Runway

Use the calculator below to figure out your burn rate and months of runway based on the cash balance in your bank account for the last few months.

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