Startup Runway Formula
The Startup Runway Formula helps entrepreneurs determine how many months their business can operate before running out of cash, based on current funds and expenditure rate. It's a critical metric for strategic planning and fundraising.
Formula
Copy the exact expression or work through it step by step below.
Runway Months = Cash On Hand / Monthly Burn Variables
RM
Runway Months
The runway months value plugged into the startup runway calculation.
COH
Cash On Hand
The cash on hand value plugged into the startup runway calculation.
MB
Monthly Burn
The monthly burn value plugged into the startup runway calculation.
Step By Step
- 1
Set the baseline case with the real calculator inputs.
Cash On Hand = $150,000, Monthly Burn = $25,000, Monthly Revenue = $5,000, Revenue Growth Pct = 5.00%
- 2
Translate rates, periods, and cash values onto the same footing before combining them.
Keep the startup runway assumptions consistent instead of mixing monthly and annual views.
- 3
Apply the formula and read the first calculator outputs, not just the headline assumption.
The calculator lands with runway months at 8 and default date at Nov 2026.
- 4
Run one changed scenario so the formula is stress-tested before it is trusted.
The startup runway calculator page is the fastest way to compare that second case.
Worked Example
Startup Runway sample case
Cash On Hand
$150,000
Monthly Burn
$25,000
Monthly Revenue
$5,000
Revenue Growth Pct
5.00%
Runway Months = Cash On Hand / Monthly Burn using cash on hand $150,000, monthly burn $25,000, monthly revenue $5,000, revenue growth pct 5.00%.
The calculator lands with runway months at 8 and default date at Nov 2026.
Common Variations
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Sources & References
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