Runway and Scenario Calculator

What is Runway?

Runway estimates how many months your company can operate at current net burn before cash runs out. Scenario toggles model hiring and revenue changes so founders can stress-test plans before committing to spend.

Formula

Version v1. See methodology and the public formula repo for sources and change history.

Worked example

Using the default example inputs (Cash on hand: $2,500,000; Monthly revenue: $180,000; Monthly operating expenses: $320,000; Fully loaded cost per hire (monthly): $15,000; Scenario (0=base, 1=hire+5, 2=hire-5, 3=+20% growth): 0), Runway equals 17.9 months (Runway (Base)). Runway shortens when burn rises or revenue stalls. Model hiring and growth scenarios before committing to FTE-heavy GTM.

What good looks like

Operators often target 18 to 24+ months at growth stage, but risk tolerance varies. Recompute after fundraising, churn shocks, or step-function hiring plans.

Directional guidance only, not a cohort benchmark claim. Premium cohort bands appear when sample thresholds are met for your profile.

FAQ

What is Runway?

Runway estimates how many months your company can operate at current net burn before cash runs out. Scenario toggles model hiring and revenue changes so founders can stress-test plans before committing to spend.

What is the Runway formula?

Runway (months) = Cash on hand / Monthly net burn

Gross burn vs net burn?

This calculator uses net burn: operating expenses minus revenue in the period. Using gross burn overstates runway.

What do scenario presets change?

They adjust monthly opex (hiring scenarios) or revenue (+20% growth) while holding cash constant to show runway sensitivity.

Runway vs burn multiple?

Runway is a cash survival lens; burn multiple is ARR efficiency per dollar burned. They are complementary, not interchangeable.