About startup runway calculator
Runway is how many months your cash will last at your current spending. It tells you when you must raise money or reach profit.
Formula
Runway = cash in bank ÷ monthly net burn. ₹60 lakh with a net burn of ₹5 lakh a month leaves 12 months.
Good habits
- Start fundraising when you still have 9 to 12 months of runway.
- Plan with the cash you have, not the revenue you hope for.
- Update the number monthly.
A worked example
A startup with ₹80 lakh in the bank spends ₹12 lakh a month and earns ₹4 lakh, so its net burn is ₹8 lakh and its runway is 10 months. If revenue grew 10 percent each month and costs stayed flat, revenue would pass costs in month 13, and the company would have used only about ₹58 lakh of its cash. Growth assumptions like this are optimistic, so also plan for the case where revenue stays flat.
What to do with it
Decide the date by which you must be profitable or fundraised, and work backwards. Cutting costs early is easier than doing it in a crisis.
