xearno.tools

Xearno MBA Toolsfunding · finance

Runway & Burn

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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