Model runway, burn, and revenue pressure for software teams. Test expense changes fast. Make funding decisions using practical projections and clear charts.
| Scenario | Cash Balance | MRR | Total Expenses | Net Burn | Runway |
|---|---|---|---|---|---|
| Lean Team | $120,000 | $18,000 | $30,000 | $12,000 | 10.00 months |
| Growth Push | $250,000 | $20,000 | $55,000 | $35,000 | 7.14 months |
| Near Break-Even | $300,000 | $48,000 | $52,000 | $4,000 | 75.00 months |
Gross Burn = Fixed Expenses + Variable Expenses + Other Expenses
Net Burn = Gross Burn − Monthly Recurring Revenue
Runway in Months = Cash Balance ÷ Net Burn
Runway in Days = Runway in Months × 30.44
Break-Even Revenue Needed = Gross Burn − Monthly Recurring Revenue, when positive
The projection chart updates cash monthly. Revenue and expenses can grow by the percentages you enter.
Runway is the time your team can keep operating before cash runs out. It helps founders and managers plan hiring, releases, fundraising, and cost control.
Gross burn is total monthly spending. Net burn subtracts monthly revenue from that spending. Net burn gives a more realistic picture of survival time.
Revenue growth can extend runway significantly. A flat model may look riskier than reality when subscriptions, contracts, or renewals are increasing every month.
Costs often rise during product launches, hiring, infrastructure scaling, or customer support expansion. Expense growth prevents overly optimistic runway estimates.
Many teams aim for at least 6 to 12 months. The right target depends on growth stage, fundraising access, product maturity, and revenue stability.
Yes. It shows how quickly cash declines and how much buffer remains. That helps teams decide when to cut costs or begin fundraising conversations.
No. This is a fast planning tool. Detailed models should also include payroll timing, taxes, debt, one-time costs, seasonality, and collection delays.
Startup founders, product leaders, finance managers, and engineering teams can use it. It is useful when planning budgets, launches, and hiring decisions.
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.