Running a Businessbudgeting · planning
Runway & Burn
Worldwide — arithmetic, no local rules
Computes runway from cash and net burn, optionally with burn trending up or down monthly, and reads the result against fundraising realities: raises take 3–6 months, and 18–24 months post-raise is the norm.
The numbers
- Runway
- 12.5 months
- Monthly burn (today)
- 40,000
The operator’s read
Good sign
12–24 months is the standard healthy post-raise range — enough to hit the next milestone before raising again.
Worth knowing
The sharper question (Paul Graham’s "default alive"): at current growth, does revenue overtake expenses before cash runs out? Runway alone treats revenue as static — model the crossover, not just the countdown.
Methodology
Constant burn: runway = cash ÷ net monthly burn. With burn trending, cash is depleted month by month at burn × (1+g)^t, with a linear correction for the final partial month.
Net burn = total expenses − revenue. Use a trailing 3-month average; a single month is noisy (annual invoices, one-off costs).
The 3–6-month fundraise duration and 18–24-month post-raise norms are standard venture operating guidance. "Default alive" (revenue growth crossing expenses before zero cash) is the stricter and better test.
For agents
Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →
curl -s https://xearno.tools/api/v1/tools/runway \
-H 'content-type: application/json' \
-d '{"cash":500000,"burn":40000,"burnChange":0}'Schema: GET /api/v1/tools/runway · MCP tool name: runway
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Embed this calculator
Free to use on your own site. It keeps working as the rules change, because we maintain the data — no ads, no cookies, and a link back to the full tool.
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