Funding Runway Calculator

Track funding with deeper burn and runway insight. Test hiring, revenue, and infrastructure growth scenarios. See when cash tightens before critical delivery commitments arrive.

Calculator Inputs

The page stays in a single-column flow, while the calculator fields use a responsive 3-column, 2-column, and 1-column grid.

Cash already in the bank.
Debt capital available to extend runway.
Reserve level you do not want to cross.
Subscriptions, retainers, or recurring contracts.
Services, setup fees, or non-recurring work.
Top-line monthly growth assumption.
Revenue leakage from lost customers.
Rent, tooling, compliance, support, and admin.
Current team salary and contractor load.
Extra payroll added each month through hiring.
Delivery, support, payment, or service cost load.
Cloud, observability, data, and hosting expense.
Expected monthly platform cost growth.
Applies a gradual monthly inflation factor.
Set 0 if no planned funding event.
Cash injected at the start of that month.
Used for raise and savings estimates.
Number of months shown in the table and chart.

Example Data Table

This sample shows how the projection changes across the first six months of a software funding plan.

Month Opening Cash Revenue Gross Burn Net Burn Ending Cash
1 $600,000.00 $85,000.00 $170,650.00 $85,650.00 $514,350.00
2 $514,350.00 $87,550.00 $178,797.21 $91,247.21 $423,102.79
3 $423,102.79 $90,176.50 $187,008.65 $96,832.15 $326,270.63
4 $326,270.63 $92,881.80 $195,284.99 $102,403.19 $223,867.44
5 $223,867.44 $95,668.25 $203,626.89 $107,958.64 $115,908.79
6 $115,908.79 $98,538.30 $212,035.06 $113,496.76 $2,412.03
Example runway to buffer: 5.32 months
Example runway to zero: 7.67 months
Example breakeven: Not reached

Formula Used

Available Capital = Starting Cash + Credit Line + Extra Raise

Effective Revenue Factor = 1 + Monthly Revenue Growth % - Monthly Churn %

Revenue for Month m = Base Revenue × (Effective Revenue Factor)m - 1

Inflation Factor for Month m = (1 + Annual Inflation %)(m - 1) / 12

Payroll for Month m = (Base Payroll + Monthly Hiring Increase × (m - 1)) × Inflation Factor

Infrastructure Cost for Month m = Base Infrastructure × (1 + Infrastructure Growth %)m - 1 × Inflation Factor

Variable Cost for Month m = Revenue for Month m × Variable Cost %

Gross Burn for Month m = Fixed Opex + Payroll + Infrastructure Cost + Variable Cost

Net Burn for Month m = Gross Burn - Revenue

Ending Cash for Month m = Opening Cash + Funding Added - Net Burn

Runway is the month where projected ending cash first crosses either the reserve buffer or zero.

How to Use This Calculator

  1. Enter your starting cash and any committed credit line.
  2. Add recurring and other monthly revenue expected from software customers.
  3. Set growth and churn assumptions to reflect acquisition and retention.
  4. Enter fixed operating costs, payroll, infrastructure, and variable delivery costs.
  5. Add monthly hiring increase if you plan to expand the team steadily.
  6. Include annual inflation to reflect gradually rising operating pressure.
  7. Optional: add a future funding month and the amount expected.
  8. Set a minimum cash buffer to model a safer operating reserve.
  9. Choose forecast months and your target runway goal.
  10. Press Calculate Runway to view result cards, chart, and the month-by-month projection table above the form.

FAQs

1. What does funding runway mean?

Funding runway is the time your cash can support operations before reaching zero or a chosen reserve level. This version also models growth, churn, hiring, inflation, and future funding.

2. Why track runway to a cash buffer?

Zero cash is usually too late for action. A reserve buffer highlights when your team may lose flexibility, negotiating power, hiring confidence, or delivery stability long before cash is fully exhausted.

3. What is the difference between gross burn and net burn?

Gross burn is total monthly operating cost. Net burn subtracts revenue from that cost. Net burn shows how quickly cash is truly being consumed after sales are considered.

4. Why include churn in a runway model?

Churn reduces future revenue, which directly shortens runway. In software businesses, ignoring churn can make forecasts look healthier than reality, especially when growth appears strong on the surface.

5. How should I enter monthly hiring increase?

Use the added payroll you expect each month from new hires, contractor expansion, or scheduled compensation growth. Set it to zero if team size will stay flat.

6. What does the required raise estimate show?

It estimates how much additional capital is needed to stay above your reserve buffer through the target runway period, based on the model’s projected month-by-month cash movement.

7. What does approximate monthly savings needed mean?

It is an average monthly cost reduction target that can help you reach the selected runway goal without new funding. Treat it as a planning signal, not an accounting rule.

8. Can profitable growth remove the runway limit?

Yes. If projected revenue grows enough to offset burn, the model may show that cash never crosses your reserve or zero within the simulated horizon. That indicates a breakeven or cash-generating path.

Related Calculators

monthly burn ratebacklog burn raterunway forecastweekly burn rate

Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.