How much runway should a startup have?

Aim for at least 18 months before your next raise. This gives time to hit milestones and negotiate from strength. Less than 6 months is a crisis; 6-12 months means you should be fundraising or cutting burn.

Does runway include revenue?

Runway is usually calculated using net burn (expenses minus revenue). So yes, revenue extends your runway. Some teams use gross burn for conservative planning.

How do I extend my runway?

Reduce burn, increase revenue, or raise capital. Cost cuts and revenue growth are within your control; fundraising takes time. Start early.

Runway for SaaS Founders

What is Runway?

Runway is how many months your company can operate at the current burn rate before running out of cash. It is your financial safety cushion.

Why Runway matters for SaaS founders

Runway determines when you need to raise, cut costs, or reach profitability. Less than 6 months is urgent. 18+ months gives breathing room. Investors want to see a clear runway plan.

How to calculate Runway

Divide your current cash balance by your monthly net burn rate. The result is months of runway.

Runway = Cash Balance / Monthly Burn Rate

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Runway Calculator

Cash balance ($)

Monthly burn rate ($)

Example calculation

$180,000 / $25,000
7.2 months

Result: 7.2 months

You have about 7 months of runway. If you are not yet profitable, consider a raise or cost reduction soon.

Benchmarks & best practices

Early-stage: Early-stage startups often target 18+ months runway before raising. Bootstrapped companies aim for profitability.
Healthy range: 18+ months is comfortable. 12-18 months is adequate if you have a clear path. Below 6 months is critical.
Warning range: Less than 6 months runway requires immediate action: fundraising, cost cuts, or revenue acceleration.

Frequently Asked Questions

How much runway should a startup have?: Aim for at least 18 months before your next raise. This gives time to hit milestones and negotiate from strength. Less than 6 months is a crisis; 6-12 months means you should be fundraising or cutting burn.
Does runway include revenue?: Runway is usually calculated using net burn (expenses minus revenue). So yes, revenue extends your runway. Some teams use gross burn for conservative planning.
How do I extend my runway?: Reduce burn, increase revenue, or raise capital. Cost cuts and revenue growth are within your control; fundraising takes time. Start early.